Bitcoin Miner Stocks Rally As Crypto Demand Rebound

Bitcoin’s August rally revived many of the sector’s worst-beaten stocks. It reversed a trend favoring miners who shifted to high-performance computers and artificial intelligence. Investors may be rewarding Bitcoin exposure once again.

BlocksBridge Consulting has published its latest Miner Weekly Newsletter. reported Bitcoin’s (BTC’s) recent 23% rise has outpaced the majority of AI-related infrastructure stocks.

Three beaten-down Bitcoin mining companies — Canaan, American Bitcoin and Cango — gained between 41% and 67%. CoreWeave, Nebius, and IREN all rose by about 15%.

Blocksbridge identified three factors that drove Bitcoin’s rise. First, the US Treasury Department’s Aug. 19 announcement It would double its buybacks of longer-dated Treasury Securities to support liquidity.

A second reason was the renewed optimism in regulatory matters following an event at which US President Donald Trump met with executives of crypto companies. urged Congress will pass a “fair version” CLARITY Act – a crypto market legislation bill in limbo.

In the third case, a short squeeze was initiated after Bitcoin broke out. More than $1.6 Billion in cryptocurrency positions were liquidated within 24 hours.

Bitcoin-focused companies outperformed those that shifted their focus to AI or HPC. Source: Miner Weekly

Related: Strategy’s $66B Bitcoin machine hinges on capital markets, not BTC price: Report

BTC price still drives miners despite AI pivot

BlocksBridge findings are echoed earlier Cointelegraph reporting Bitcoin’s rally has lifted cryptocurrency-related stocks including Bitcoin miners. The gains highlight how Bitcoin can still have a strong influence on mining stocks even when many miners increasingly focus their attention towards AI and HPC in recent years.

Separate recent BlocksBridge analysis According to the study, public Bitcoin miners invested $15 on AI data centers per $1 of AI revenue. Nine publicly traded miners have generated $341.2 millions in AI and HPC revenues so far in 2020, against $5.11billion in capital expenditures.

Related: Bitcoin breaks above 200-day moving average for first time since November

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