Bitcoin Mining Stocks Surge on AI Infrastructure Pivot
Bitcoin mining stocks have seen significant gains in 2023 as investors bet on companies expanding into AI data-center infrastructure. According to CryptoQuant analyst JA Maartunn, shares of Riot Platforms rose 83% from January through the end of July, while Hut 8 and Bitfarms saw increases of 72% and 50%, respectively. Core Scientific's shares climbed 31% over the same period.
The rally is not directly tied to Bitcoin mining itself, but rather miners' efforts to supply their power capacity and data-center infrastructure to AI companies, Maartunn explained. The competition has shifted from hash rate to power, grid access, and AI-supporting infrastructure.
Riot Platforms has been expanding its AI infrastructure business through a long-term lease agreement for a 191-megawatt data center with an AI company. This move reflects the growing demand for AI data-center infrastructure, which is driving investor interest in these stocks.