Since the start of the bull market, stocks linked to cryptocurrencies have generally followed the recent progress of Bitcoin. However, mining companies show a very different trajectory. Since August 17, the price has gained approximately 22%, as exchanges and companies move more in line with the market. This divergence draws attention to the stock market performance of miners, while several players are also developing computing infrastructures for artificial intelligence.
In brief
- Bitcoin has gained around 22% since August 17, while mining stocks are up much less.
- Canaan remains the only miner to outperform Bitcoin, while the other ten companies lag behind.
- Core Scientific and Terawulf underperform Bitcoin by 27% and 24%, respectively.
- Several miners are turning to AI data centers to diversify their activities in the face of crypto market cycles.
Bitcoin miners remain behind
Since August 17, the price of bitcoin has increased by 22%. Exchange platforms and companies have moved in parity with this rise. Bullish, Coinbase and Robinhood are among the players cited in the Block report. For stablecoins, we find Circle, and Figure, a company specializing in tokenized mortgages which complete this group.
Mining companies have a less favorable balance sheet. Canaan is the only exception, as it outperformed Bitcoin. The other ten mining companies show lower performance than BTC. Their median yield reaches only 1.8%.
Core Scientific and Terawulf are among the lagging companies. They underperformed Bitcoin by 27% and 24%. The rise in digital assets does not automatically produce an equivalent rise in mining stocks. Operational risks weigh on their prices.
The shift to AI data centers
Several miners have initiated a conversion to HPC infrastructures intended for AI data centers. This development supported certain prices during the decline. However, it has dispersed attention between mining and IT infrastructure. The risks remain present.
Bitcoin retains an important place in this model. Mining can become lucrative when the market rises, while AI data centers can strengthen balance sheets during crypto downturns. Companies are therefore looking for two different drivers. This strategy may produce a different trajectory for Bitcoin.
In the short term, the gap between Bitcoin and mining stocks will remain one to watch. Performance will depend on the crypto market and HPC activities. Diversification can support balance sheets during declines. A resumption of mining could improve results.
The trajectory of mining companies will depend on the balance between their crypto activities and their HPC projects. If the market advances, mining can support their results. During downturns, AI infrastructures could offer another relay. The gap with Bitcoin will thus remain an important benchmark in the medium term.
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