Crypto Miners Riding the AI Wave Are Leaving Bitcoin Behind

Core Insights - The primary beneficiaries of the recent cryptocurrency resurgence are not Bitcoin holders but the miners, with mining firms' shares outperforming Bitcoin itself [1][4] - A fund tracking listed mining companies has increased over 150% year-to-date, indicating a shift in investor perception towards miners as tech infrastructure firms rather than just Bitcoin producers [4][5] Industry Trends - The mining sector has historically been affected by Bitcoin's price volatility, but recent trends show a pivot towards hybrid models that incorporate artificial intelligence (AI) and high-performance computing (HPC) [2][4] - The current market environment has led to a significant increase in the share prices of companies like Cipher Mining Inc. and IREN Ltd., which have risen approximately 300% and 500% respectively this year as they transition from traditional Bitcoin mining to AI infrastructure [5] Financial Developments - Cipher Mining Inc. has entered a 10-year, approximately $3 billion colocation agreement with Fluidstack, which includes $1.4 billion in lease obligations and warrants for a 5.4% stake, highlighting the convergence of crypto mining and AI computing [5] - IREN has successfully closed a $1 billion convertible notes offering, while TeraWulf Inc. announced plans to issue $3.2 billion in senior secured notes to expand its Lake Mariner data center in New York [6]