Key Points Artificial intelligence still has plenty of growth left, and these AI ETFs are poised to benefit. Many of the top AI ETFs focus on chipmakers and software companies. High expense ratios are a common theme, but the annualized returns for these funds justify the additional cost. 10 stocks we like better than Valkyrie ETF Trust II - CoinShares Bitcoin Mining ETF › Artificial intelligence (AI) stocks have been some of the best stocks in the market, and AI exchange-traded funds (ETFs) can ...

Core Insights - The surge in share prices for AI and HPC companies since September has significantly benefited bitcoin miners diversifying into these sectors, although this growth entails increased financial risks [1][3]. Debt Market Activity - Bitcoin miners are increasingly engaging in debt markets to finance their expansions into AI and HPC, with combined debt and convertible note offerings reaching an estimated $6 billion in Q3 [2][3]. - Companies like TerraWulf, MARA Holdings, and Cipher raised billions through convertible bonds, while CleanSpark utilized credit lines to strengthen their financial positions [3]. Recent Fundraising Efforts - In Q4, TerraWulf initiated a $3.2 billion private placement of senior secured notes, marking it as the largest single offering by a public miner [4]. - IREN issued a $1 billion convertible bond, and Bitfarms announced a $300 million convertible note shortly after [4]. Financial Implications - Some debt instruments, such as IREN's zero-coupon bonds, differ in structure, while TerraWulf's issuance carries a 7.75% coupon, leading to an annual interest expense of approximately $250 million, which exceeds its projected 2024 revenue of $140 million [5]. Market Dynamics - The current fundraising cycle is characterized by a shift towards AI and HPC, which may mitigate risks compared to previous cycles where miners faced severe financial distress [6]. - The market is rewarding miners transitioning from traditional bitcoin operations to AI/HPC, with the CoinShares Bitcoin Mining ETF up 160% year-to-date, indicating a positive investor sentiment towards this pivot [7].