Bitcoin Mining Stocks Jump on AI Infrastructure Momentum

Shares of several Bitcoin mining companies surged Monday after Hut 8 and IREN announced major AI infrastructure deals, reinforcing investor optimism around miners expanding into artificial intelligence and high-performance computing.

IREN, Cipher Digital, CleanSpark, Hut 8 and MARA Holdings each gained at least 11% in early Monday trading. The rally followed Hut 8’s announcement of a 15-year, $9.8 billion lease for its AI data center campus and IREN’s disclosure of $2.8 billion in cloud services contracts with AI developers. Both companies began as Bitcoin (BTC) miners before accelerating a pivot toward AI infrastructure and cloud computing as mining economics weakened.

IREN now expects its AI cloud business to generate more than $4 billion in annual recurring revenue by the end of 2026.

The rally was reflected in The Energy Mag’s TEM AI Infrastructure Growth Index, which tracks 20 companies spanning the Bitcoin mining, neocloud and AI infrastructure sectors. The index rose 1.4% on Monday and is up more than 12% over the past week. 

The performance of the TEM AI Infrastructure Growth Index.
Source: The Energy Mag

The rally in Bitcoin mining stocks coincided with a broader recovery in technology shares, as the Nasdaq Composite Index added 0.9% by midday. The Philadelphia Semiconductor Index, a closely watched gauge of chipmakers powering the AI boom, climbed 2% after entering a technical bear market last week, defined as a decline of 20% or more from its recent high.

Related: Bitdeer stock jumps 14% as company expands US mining hardware production

AI pivot fuels gains, raises questions

Bitcoin mining stocks have experienced sharp volatility this year as companies contend with a weak Bitcoin mining environment while increasingly pivoting toward AI infrastructure and cloud computing. According to Blocksbridge Consulting, the AI pivot has driven a sharp re-rating across the sector, but it has also attracted greater investor scrutiny over insider stock sales.

In a recent Miner Weekly newsletter, Blocksbridge said insider sales at TeraWulf, Riot Platforms, Core Scientific and Cipher Mining have drawn investor attention. Although the transactions were executed under prearranged trading plans, they have fueled questions about whether AI-driven enthusiasm pushed share prices high enough for executives to cash out.

To be sure, the AI pivot has already required substantial investment from Bitcoin miners, with much more capital still needed. Blocksbridge estimates the industry will require another $50 billion to realize its AI ambitions, with IREN facing the largest funding gap at roughly $21.1 billion.

Related: Crypto Biz: When dollars disappear, stablecoins step in