Microsoft comments offer positive read-through to bitcoin miners, says Cantor

Microsoft (MSFT) on Wednesday offered commentary on its earnings call that is a positive read-through to bitcoin miners, Cantor Fitzgerald analyst Thomas Blakey tells investors in a research note. On the call, Microsoft management reiterated that they are capacity-constrained because of a lack of long-lived assets and have been short power and space and they expect capacity constraints to be more in equilibrium by the end of the year. The firm sees one diversifier for Microsoft being CoreWeave, who Microsoft has a long-term contract with, and notes that this is a solid read through to Core Scientific (CORZ). Microsoft added that it is planning to have CapEx be more heavily weighted to GPUs in future years, ultimately creating the need for more capacity, which Cantor says would benefit those with access to power before the end of 2026, including IREN (IREN), Galaxy Digital (GLXY), Bitdeer (BTDR), TeraWulf (WULF), Riot Platforms (RIOT), Cipher Mining (CIFR), and Hut 8 (HUT).