ZACKS·2026-02-11 16:05Core Insights - Morgan Stanley initiated coverage on Cipher Mining (CIFR) and TeraWulf (WULF) with overweight ratings, leading to significant share price increases for both companies, with price targets set at $38 for CIFR and $37 for WULF, indicating upside potential of approximately 158% and 159% respectively from their February 6, 2026 levels [1][8] Group 1: Investment Thesis - The primary catalyst for Morgan Stanley's bullish outlook is the companies' transformation from traditional bitcoin mining to high-demand AI data center services, positioning them similarly to Data Center REITs [3] - This strategic pivot allows CIFR and WULF to leverage their existing infrastructure and access to low-cost power, addressing the industry's structural shortage of AI compute capacity [4] Group 2: ETF Investment Opportunities - Investing in ETFs provides a safer alternative to individual stocks, offering built-in volatility buffers and diversification, which can mitigate risks associated with the high volatility of individual mining stocks [5][6] - Suggested ETFs for exposure to CIFR and WULF include: - Global X Blockchain ETF (BKCH) with net assets of $252.6 million, which has surged 26.8% over the past year [9] - Amplify Blockchain Technology ETF (BLOK) with net assets of $1.08 billion, gaining 17.2% over the past year [10] - Grayscale Bitcoin Miners ETF (MNRS) with assets under management of $11.04 million, rallying 28.2% over the past year [11] - VanEck Digital Transformation ETF (DAPP) with net assets of $286.5 million, increasing by 13.3% over the past year [12] - Schwab Crypto Thematic ETF (STCE) with net assets of $245 million, gaining 26.7% over the past year [14] - Spear Alpha ETF (SPRX) with net assets of $164.6 million, soaring 49.3% over the past year [16]