COINOTAG news, September 18, analysts at market research and brokerage firm Bernstein reported that amid Bitcoin price fluctuations, the stock values of mining companies such as Core Scientific, IREN, and Terawulf have excelled, attributed to growing confidence in the data center concept. Analysts noted that companies diversifying into artificial intelligence have experienced favorable stock performance.
This positive trend is driven by investors’ trust in varied business models, enhanced valuation multiples, more predictable revenue streams, and adaptability amidst Bitcoin market volatility. Although these firms may exhibit slower hash rate growth compared to dedicated Bitcoin mining companies, their concurrent expansion in data center infrastructure opens up additional avenues in the burgeoning field of AI.
Notably, large public Bitcoin mining entities like Marathon, Riot Platforms, and CleanSpark, which possess substantial Bitcoin reserves, have sold a smaller fraction of their mining proceeds this year relative to 2023. In August, these key firms retained 100% of their production output. Analysts commented, “This trend highlights major miners’ preference to secure funding or accept equity dilution to invest in capital expenditures and enhance their Bitcoin mining market share, rather than liquidate their Bitcoin assets.” So far, they consider AI a non-diversion and have not redirected their production capabilities towards it.