Valkyrie Bitcoin Miners ETF Surges 97% as Fund Transitions into AI Leasing Deals

The Valkyrie Bitcoin Miners ETF (WGMI) has defied bitcoin's decline by surging 97% over the past year, despite its underlying asset falling 46%. The fund's performance is largely driven by its shift from traditional bitcoin mining to AI leasing deals. Companies like Riot and Core Scientific have entered into multi-billion-dollar leases for AI infrastructure, decoupling WGMI's value from bitcoin's price.

WGMI now heavily relies on capital expenditures related to AI hyperscalers, with long-term leases driving value rather than bitcoin mining profitability. This shift in focus has led some investors to view the fund as an AI infrastructure play rather than a traditional bitcoin miner ETF.

Fund manager rebalancing and AI capex trends will likely influence WGMI's future performance. Investors seeking direct exposure to bitcoin may want to consider spot bitcoin ETFs instead, as WGMI's behavior has become increasingly tied to AI-related activities.