Bitcoin mining stocks surged up to 25% as Bitcoin crossed $70,000, with companies like Bitdeer Technologies (+24.4%), IREN (+17.8%), and Hut 8 (+15.5%) leading the gains.
On Monday, shares of the Bitcoin mining companies soared by a staggering 25% as BTC price BTC $109 937 24h volatility: 2.7% Market cap: $2.19 T Vol. 24h: $39.74 B rallied above $70,000 levels. The recent rally comes just ahead of the US election results, as macro indicators cheer ahead for a potential Donald Trump victory. On the other hand, the push into artificial intelligence (AI) by BTC miners has opened up further prospects of a revenue bump.
In comparison to other crypto firm, Bitcoin mining stocks have underperformed over the past few months. Following the Bitcoin halving event, the BTC miners found themselves in a tough situation with 50% drops in rewards and rising operational costs. However, it seems that the bad days could be behind us for the crypto mining industry.
On October 28, top public-listed Bitcoin mining firms in the US saw their stock prices surging 12-20% amid a broader equity market rally on Wall Street. Marathon Digital (NASDAQ: MARA) stock jumped 11.9%, Hut 8 Corp (NASDAQ: HUT) surged by 15.5%, Core Scientific (NASDAQ: CORZ) surged by 6.21%, and so on. Mitchell Askew, head analyst at Bitcoin mining company Blockware said:
“Deficit spending and lower interest rates are driving global liquidity higher [while] investors are fearful of high inflation over the long term, as evidenced by poor performance from treasury bonds since the Sept[ember] rate cut”.
According to Askew, Bitcoin miners who could no longer operate profitably after April’s halving event have now exited the market. He noted that these miners had been creating substantial selling pressure in the market, and their departure could positively impact Bitcoin’s price. “This is evidenced by the fact that mining difficulty is about to increase for the 3rd time,” Askew pointed out.
Bitcoin Mining Firms Benefits from AI Push
Some of the top Bitcoin miners have navigated their operations to cater to the growing demands of the Bitcoin mining industry. Bitcoin mining companies are finding success by expanding into AI and high-performance computing, according to Askew.
On October 28, several mining stocks saw significant gains, led by Singapore’s Bitdeer Technologies with a 24.4% increase. Other notable performers included IREN (+17.8%), Gryphon Digital Mining (+16.5%).
One of the top-performing Bitcoin miners’ who has benefitted from the AI transition early is Core Scientific. The CORZ stock is up by a massive 312% since the beginning of 2024 and is currently trading at $14.20 as of Monday’s closing. This summer, Core Scientific signed a 12-year deal with AI hyperscaler CoreWeave, potentially generating up to $3.5 billion in revenue. The mining company has now secured three contracts, adding 70MW and 112MW deals to its initial 200MW agreement.
Before Monday’s opening bell, Jefferies analyst Jonathan Peterson issued a “buy” rating on Core Scientific, setting a price target of $19. He wrote:
“Impressive post-bankruptcy comeback story as the company leverages its significant access to power — previously earmarked for Bitcoin mining — to build AI-focused data centers”.
Core Scientific CEO Adam Sullivan also stated that the company has plans of exponential growth in the coming year. “Signing up another 500MW or 1GW of deals over the course of the next few years puts us in a position where we’re not a $2.5 billion company, we are potentially a $25 to $30 billion company,” said Sullivan.
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