Core Insights - Bitcoin mining companies that diversified into AI and high-performance computing (HPC) significantly outperformed traditional cryptocurrency miners in 2025 Group 1: Company Performance - IREN achieved a 285% return in 2025, leading the sector after signing a five-year agreement with Microsoft valued at approximately $9.7 billion for cloud computing services [2] - Cipher recorded a 218% increase following a 15-year lease agreement with Amazon Web Services and a separate $3 billion deal with Fluidstack, totaling $5.5 billion for hosting AI workloads [3] - Hut 8 saw a 124% return after announcing a $7 billion partnership with Anthropic and Fluidstack to develop AI data centers, with potential total contract value reaching $17.7 billion [4] Group 2: Underperforming Companies - Marathon Digital (MARA) ended the year down 46%, with Rosenblatt Securities lowering its price target due to high exposure to bitcoin mining and declining profitability [5] - Bitdeer experienced the largest decline among major miners, with a 48% loss attributed to a class action lawsuit regarding its SEAL04 chip development timeline [6] Group 3: Mixed Sector Performance - Other miners showed varied performance: Terawulf returned 103%, Bitfarms gained 58%, CleanSpark ended with a 10% gain, and Core Scientific rose 4%, while Hive fell 9% and Cango dropped 32% [7]

Core Viewpoint - Cango Inc. reported an increase in Bitcoin mining output and plans for future investments to enhance mining efficiency and develop parallel energy and AI computing platforms [1] Group 1: Mining Operations - In December 2025, Cango Inc. produced 569 BTC, an increase from 546.7 BTC in November, with an average daily output of 18.35 BTC [1] - The company held a total of 7,528.3 BTC at the end of December, reflecting a month-over-month increase of approximately 569 BTC [1] - Cango deployed a mining power of 50 EH/s, with an average operational hash rate of 43.36 EH/s for the month [1] Group 2: Investment and Future Plans - A major shareholder plans to invest an additional $10.5 million, expected to be completed by January 2026, aimed at improving mining efficiency [1] - The company intends to hold its Bitcoin long-term and has no plans to sell [1] - The investment will also support the development of energy and AI computing platforms in parallel with mining operations [1]

Core Insights - The investment frenzy in artificial intelligence is leading large cloud service providers to invest billions in new data centers, prompting investors to focus on "picks and shovels" stocks in the tech sector [1][9] - In 2025, data storage companies led the S&P 500 index, with SanDisk's stock soaring nearly 580%, while Western Digital and Seagate ranked second and fourth respectively [1][9] - Nvidia, previously a leader in the AI sector, saw its stock rise only 40% in 2025, dropping to 71st place in the S&P 500 index, indicating a shift in market dynamics [1][9] Data Storage Sector - Following significant gains in 2025, Wall Street expects continued interest in the data storage sector in 2026, although the leading stocks may face a slowdown [11] - Analysts project an average target price of $264 for SanDisk in 2026, representing an approximate 8% increase from its current price of around $244 [11] - Analysts are optimistic about Pure Storage, with a current stock price of $68 and a target price of $94 for 2026, indicating a potential 38% increase [3][11] Infrastructure and Power Sector - Companies involved in data center construction and power supply are expected to maintain upward momentum [12] - Quanta Services is highlighted as a preferred stock, providing engineering contracting services to utility and telecom companies, alongside other contractors like MYR Group and Primoris Services [12] - Companies producing high-speed fiber and copper cabling solutions, such as Amphenol, are also in demand, along with power infrastructure firms like Vista Energy and General Electric Vernova [12] Bitcoin Mining Companies - Bitcoin mining firms are transitioning from cryptocurrency mining to data center power supply, presenting potential valuation reassessment opportunities [13] - These companies have established power resources and are expected to shift towards higher-value high-performance computing hosting contracts [13] - Notable companies in this sector include Bitdeer Technologies, which saw a stock surge after announcing further AI investments, and others like Italian National Power and Riot Platforms [6][13] Temperature Control and Cooling Sector - The need for high-precision HVAC systems in data centers is driving demand for related equipment companies [14] - Vertiv Technologies, which provides power systems and cooling solutions for data centers, saw a 46% stock increase in 2025 and remains a market focus [14] - Other notable companies include Comfort Systems USA and water treatment firms like Ecolab and American Water Works [14] Software Sector - Long-term investors are turning their attention to the software sector, anticipating that advancements in large language models will benefit software companies in the long run [15] - The S&P 500 software industry index saw a modest 12% increase in 2025, lagging behind the broader market's 17% rise, making the sector's valuation more attractive [15][16] - Companies like Snowflake, Datadog, and ServiceNow are being monitored for their potential despite current market conditions [16]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 DL HOLDINGS GROUP LIMITED 德林控股集團有限公司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：1709） (1)完成有關涉及根據特別授權發行可換股債券、認股權證及 獲利股份的比特幣礦機收購事項的須予披露交易；及 (2)有關比特幣挖礦業務的最新發展 完成比特幣礦機收購事項 董事會欣然宣佈，比特幣礦機正式協議所載之所有先決條件已獲達成，且已 於2025年12月30日完成。 1 有關比特幣挖礦業務的最新發展 董事會欣然向其股東及市場提供其比特幣挖礦業務之最新進展。於本公告 日期，本集團已完成(i)向比特大陸收購位於阿曼及巴拉圭的2,448台總哈希 率約為0.825 EH/s的比特幣礦機；(ii)向Evergreen Wealth Investment Limited收 購位於美國奧克拉荷馬州的2,200台總哈希率約為1.040 EH/s的比特幣礦機； ...

Group 1 - Bitfarms is transitioning from Bitcoin mining to high-performance computing and AI infrastructure, aiming for completion by 2027 [1] - Bitfarms has a projected P/E ratio of 84.04 for 2026, which is four times its historical P/E, but its stock price has dropped 62% since early October 2025 [2] - Bitfarms has reported three consecutive quarters of earnings per share (EPS) below expectations, with the latest EPS at -0.08 USD, indicating worsening performance [2] Group 2 - Robinhood has established itself as a leading mobile trading platform, with its stock price soaring by 300% in 2025 and three consecutive quarters of EPS growth, reaching 0.61 USD in Q3 2025, exceeding expectations by nearly 20% [3] - The prediction market is Robinhood's fastest-growing product, allowing users to bet on real-world events, including political elections and sports betting starting in late 2025 [3] - Robinhood's growth story is considered more stable and sustainable compared to Bitfarms, due to its strong revenue model and expansion into a growing market [3]

Core Viewpoint - Delin Holdings (01709) is actively expanding its institutional-level Bitcoin mining operations through the deployment of efficient mining hardware in selected overseas mining sites in the US, Oman, and Paraguay [2][6]. Group 1: Acquisitions and Mining Capacity - The company has completed the acquisition of 2,995 Bitcoin mining machines from Bitmain, with a total hash rate of approximately 1.060 EH/s [2][6]. - Currently, the company is in the process of acquiring 2,200 Bitcoin mining machines from Evergreen Wealth Investment Limited, with a total hash rate of about 1.040 EH/s [2][6]. - Additionally, the company is purchasing a total of 4,000 Antminer S21 XP Hyd Bitcoin mining machines from three independent third-party suppliers, each with a rated computing power of approximately 473 TH/s [2][6]. Group 2: Additional Mining Machines and Output - The total hash rate of the additional Bitcoin mining machines is approximately 1.892 EH/s, with an estimated total power load of about 23 MW based on an energy efficiency of approximately 12 J/TH [3][7]. - The total cost for the additional Bitcoin mining machines is approximately $39.2 million, funded by the net proceeds from a placement and subscription completed by the company in November 2025 [3][7]. - The estimated daily Bitcoin production from the acquired and ongoing acquisitions of Bitcoin mining machines is approximately 1.71 Bitcoins under current network conditions [3][7].

Core Viewpoint - Derin Holdings (01709) is actively expanding its institutional-level Bitcoin mining operations through the deployment of efficient mining hardware in selected overseas sites in the United States, Oman, and Paraguay [1] Group 1: Acquisitions and Deployments - The company has completed the acquisition of 2,995 Bitcoin mining machines from Bitmain, with a total hash rate of approximately 1.060 EH/s, and is in the process of acquiring 2,200 machines from Evergreen Wealth Investment Limited, with a total hash rate of about 1.040 EH/s [1] - Additionally, the company has acquired 4,000 Antminer S21XP Hyd Bitcoin mining machines from independent third-party suppliers, each with a rated computing power of approximately 473 TH/s, resulting in a total hash rate of about 1.892 EH/s [1] - The estimated total power load for the full deployment of the 4,000 additional Bitcoin mining machines is approximately 23 MW, with a total cost of about $39.2 million, funded by net proceeds from a placement and subscription completed in November 2025 [1] Group 2: Expected Bitcoin Production - The total estimated daily Bitcoin production from the acquired and ongoing acquisitions of Bitcoin mining machines is approximately 1.71 Bitcoins under current network conditions [2] - The additional 4,000 Bitcoin mining machines are expected to yield an indicative daily total production of about 0.81 Bitcoins, depending on network difficulty, Bitcoin prices, uptime, and other operational conditions [2] - The 2,995 machines acquired from Bitmain are estimated to produce approximately 0.45 Bitcoins daily once fully deployed, and the 2,200 machines from Evergreen Wealth Investment Limited are also expected to yield about 0.45 Bitcoins daily upon completion of the acquisition [2]

Investment Rating - The report maintains an "Accumulate" rating for the industry [6] Core Insights - In recent years, several Bitcoin mining companies have partnered with AI cloud providers, utilizing part of their electricity for GPU hosting and developing AIDC (AI Data Center) businesses, with contracts totaling $53.6 billion and involving 1.959 GW of power [1][11] - The market perceives that Bitcoin mining companies primarily have an advantage in electricity resources compared to other AIDC competitors, but many have prior experience in self-operated cloud services [4][10] - The report suggests that companies with more AI electricity capacity tend to have higher market valuations, with average valuations of $4.73 million/MW for total electricity, $12.26 million/MW for mining electricity, and $144 million/MW for AI electricity [4][55] Summary by Sections 1. Current Status of Bitcoin Mining Transformation to AIDC - As of November 3, 2025, six Bitcoin mining companies have signed contracts with at least five cloud providers, totaling $53.6 billion and involving 1.959 GW of power [1][11] - Over 50% of the AI cloud providers that signed contracts with Bitcoin mining companies are emerging firms, with Coreweave being the largest [2][13] - The average contract duration for AIDC projects is 14 years, with a minimum of 5 years and a maximum of 25 years [3][24] - The average price for key IT load contracts is $1.73 million/MW/year, indicating a consistent pricing structure across projects [3][27] 2. Reasons and Models for Transformation - The transition to AIDC is driven by the uncertainty in revenue and profitability from Bitcoin mining, which faces challenges such as fluctuating prices and increasing competition [33][35] - AIDC offers higher gross margins compared to Bitcoin mining, with various projects reporting net operating income margins between 80% and 88% [40][39] 3. Self-Operated Cloud Services by Mining Companies - Companies like Iris Energy, Hive Digital, and Bitdeer are actively developing self-operated AI cloud services, with Iris Energy expected to operate 140,000 GPUs by the end of 2026 [43][47] - Bitdeer plans to operate 1,160 GPUs by the end of 2025, while Hive Digital aims to exceed 11,000 GPUs by the end of 2026 [44][51] 4. Future Outlook for AIDC Transformation - The report anticipates an acceleration in the transformation of Bitcoin mining companies to AIDC, as companies with more AI electricity capacity are valued higher in the market [55] - The report highlights the importance of companies having substantial electricity reserves and experience in AI cloud services for future investment opportunities [4][55]

Group 1: Company Overview - Iren, an Australian company, has transitioned from a Bitcoin mining firm to an AI infrastructure provider, experiencing a stock price increase of 200% over the past year as it shifts its focus towards AI computing and cloud services [2][3] - The company has announced a significant capital raise of $3.6 billion through equity and convertible note offerings to support its AI ambitions and expansion [1][3] Group 2: Financial Details - Iren has priced a $2 billion private convertible notes offering, which will provide long-dated, low-cost capital while preventing immediate stock dilution [1] - The convertible notes consist of two series, each valued at $1 billion, with one series due in 2032 at a 0.25% interest rate and the other due in 2033 at a 1.00% interest rate [6] - Each $1 billion note carries a 25% conversion premium, with a conversion price of approximately $51.40 per ordinary share, while the stock traded at $43.68 on December 3 [5][7] Group 3: Strategic Partnerships and Infrastructure - Iren has signed a five-year $9.7 billion GPU cloud services contract with Microsoft to supply NVIDIA GB300 chips from its Texas campus, indicating a strong commitment to expanding its AI capabilities [4] - The company currently operates 810 MW of data centers across North America and holds 2.9 gigawatts of grid-connected power across more than 2000 acres, positioning itself to meet the growing demand for AI workloads [4] Group 4: Future Expectations - If investors fully exercise their options to purchase additional notes, Iren expects to raise approximately $2.27 billion, which will be utilized for debt repurchase and further investment in AI infrastructure [9]

Market Overview - The U.S. stock market saw all three major indices close higher, with the S&P 500 up 0.25% to 6829.37 points, the Nasdaq Composite rising 0.59% to 23413.67 points, and the Dow Jones Industrial Average increasing 0.39% to 47474.46 points [4][5] - The Federal Reserve's interest rate cut expectations are growing, with predictions of a 25 basis point cut in December due to a weak labor market [4][22] Cryptocurrency Sector - The Trump family's Bitcoin mining company, ABTC, experienced a significant drop of over 38%, triggering multiple trading halts [6][7] - Despite a brief rebound in Bitcoin prices by 6%, the sell-off in related assets continues, impacting several cryptocurrencies associated with the Trump family [7] Technology Sector - Technology stocks generally rebounded, with Intel leading the S&P 500 with an increase of over 8% [9][10] - Major tech companies such as Apple, Facebook, and Nvidia also saw gains, with respective increases of 1.09%, 0.97%, and 0.86% [10][11] Tesla and Short Selling - Tesla's stock fell by 0.21%, with notable short-seller Michael Burry targeting the company, citing concerns over stock dilution and high executive compensation [12][13] - Burry estimates Tesla's annual dilution rate at approximately 3.6% and criticizes its current valuation, which stands at a P/E ratio of about 209, significantly higher than the S&P 500 average of 22 [13] Boeing Performance - Boeing shares surged by 10.16%, marking the largest increase since April, as the company expressed confidence in achieving a long-term cash flow target of $10 billion [14][15] Chinese Tech Stocks - Chinese tech stocks showed mixed performance, with companies like BYD, JD.com, and Pinduoduo experiencing slight gains, while Meituan, Alibaba, and NetEase faced declines [18][19]