Key Takeaways
- AI-focused Bitcoin miners are outperforming their rivals.
- IREN plans to double its GPU fleet and hash rate by December.
- Large miners like Marathon and Riot retain 100% of August Bitcoin production.
AI-focused Bitcoin miners, such as Core Scientific, IREN, and Terawulf, are outperforming their competitors in stock price due to greater investor confidence in their data center strategies, Bernstein analysts said in a recent report. These firms benefit from diversified business models, stable revenue streams, and increased flexibility in a volatile Bitcoin market.
Despite slower hash rate growth compared to pure Bitcoin miners, these operators are expanding their data center infrastructure, tapping into the AI market. IREN stands out, experiencing a fourfold increase in hash rate and projecting that AI cloud services will account for 10% of its earnings by the end of 2024.
Public Bitcoin miners, including Marathon, Riot Platforms, and CleanSpark, are holding substantial Bitcoin reserves, selling fewer coins this year while expanding operations. These firms are focused on efficient power usage and could see a valuation boost as the Bitcoin cycle progresses.
Bernstein analysts highlighted that AI miners typically sell 100% of their Bitcoin to fund operations, avoiding holding it on their balance sheets, in contrast to traditional miners.
