The article recommends two undervalued stocks with strong long-term growth potential: Cipher Mining (CIFR), which addresses AI data center capacity shortages with long-term deals from Amazon and Alphabet, and SoFi Technologies (SOFI), a high-growth fintech company expanding into crypto trading with 13.7 million members and 37% year-over-year revenue growth.

The article argues that AI infrastructure 'pick-and-shovel' companies are better positioned than big tech firms to profit from the AI boom. With hyperscaler CAPEX spending projected to reach $515 billion in 2026, infrastructure providers like Nebius Group, IREN, Astera Labs, TeraWulf, and Cipher Mining offer stable revenues, high margins through GPU-as-a-Service models, and exposure to growing AI demand regardless of which AI platform wins.

The Bitwise Crypto Industry Innovators ETF (BITQ) is actually an AI-focused fund with eight of its top 10 holdings being crypto miners pivoting to AI infrastructure. While the fund is flat year-to-date and nearly tripled from trough to peak last year, its 0.85% expense ratio is excessive compared to index funds. The article suggests investors may be better off cherry-picking individual stocks from the fund rather than paying the high fees.

Cipher Mining Inc. (NASDAQ: CIFR) announced the pricing of $2.0 billion in 6.125% senior secured notes due 2031 to finance the completion of its Black Pearl high-performance computing data center in Wink, Texas, and reimburse prior equity contributions. The offering is expected to close on February 11, 2026.

Cipher Mining, a crypto miner turned AI infrastructure provider, is positioned to benefit from surging AI data center demand. The company has signed major long-term deals with tech giants like Amazon ($5.5B, 15-year deal) and Google-backed Fluidstack, and holds over 3 gigawatts in its pipeline. Recent EPA rulings against gas-powered competitors and projections of 30-fold growth in U.S. AI data center demand by 2035 present significant tailwinds for the company.

Companies are increasingly adopting digital asset treasury strategies, allocating portions of their balance sheets to Bitcoin and blockchain-based instruments to hedge inflation risk and protect capital. Several firms including Greenlane Holdings, Cipher Mining, Bitmine Immersion, Coinbase, and Hut 8 Corp are making strategic moves in this space, from validator deployments to new product launches and infrastructure investments.

Despite Bitcoin's pullback from its 2025 all-time high of $126,000 to below $94,000, crypto enthusiasts remain optimistic about 2026. Crypto mining companies have performed well and are pivoting toward high-demand AI and data center operations. Three major publicly traded miners—IREN Ltd., TeraWulf Inc., and Cipher Mining Inc.—are highlighted as potential investment opportunities, with analysts predicting significant upside potential for each.

Applied Digital is positioned to capitalize on the AI infrastructure boom by providing specialized data center capacity for power-intensive AI workloads. With a 4-gigawatt pipeline and an $11 billion CoreWeave contract, the company could generate billions in annual recurring revenue as major tech companies invest heavily in AI deployment. Applied Digital's ability to deliver projects on time and on budget positions it as a trusted partner for future deals with tech giants.

Cipher Mining announced the acquisition of a 200 MW data center site in Ohio called 'Ulysses,' featuring 195 acres and secured capacity from AEP Ohio. The site is expected to energize in Q4 2027 and will provide direct access to PJM, the nation's largest wholesale electricity market. This marks Cipher's first acquisition outside Texas and expands its development pipeline to 3.4 GW across 8 sites, positioning the company to serve growing hyperscaler demand for HPC infrastructure.

Aurelius Capital Management acquired 500,000 shares of Cipher Mining (CIFR) valued at $6.3 million, making it the fund's third-largest holding at 11.4% of assets. The bitcoin mining company's stock has surged 182% over the past year, significantly outperforming the S&P 500. The investment reflects confidence in crypto and AI infrastructure as durable capital allocation opportunities, with Cipher reporting strong Q3 results and securing $8.5 billion in long-term AI hosting lease agreements.

The article highlights two small-cap growth stocks with potential for significant returns by 2035: Cipher Mining and Ondas Holdings, both positioned in AI and technology infrastructure with promising growth trajectories.

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