Bitcoin News

Story: Bitcoin Soars 22% While Major Mining Firms Struggle to Keep Up

By Evie Vavasseur

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Core Scientific and Terawulf: 27% and 24% Behind. Core Scientific is 27% behind Bitcoin over the period. Terawulf, 24%.

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Pivot to AI: Solution or Distraction?. Some miners have decided not to sit idly by. Several companies in the sector are shifting towards…

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Bitcoin has surged 22% since August 17. Not so for the miners. While the cryptocurrency climbs, most mining companies are lagging behind — and the gap is starting to hurt.

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Exchange platforms are faring much better. Coinbase and Robinhood have progressed roughly in line with Bitcoin over the same period.

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Core Scientific is 27% behind Bitcoin over the period. Terawulf, 24%. These two figures pretty much sum up the structural problem of the sector.

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And this is where it gets complicated for investors. Buying Bitcoin is simple. Buying shares in mining companies is betting on their ability to manage heavy industrial operations…

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Underperformance is not new in the sector, but a 27% lag in less than a month of gains is thought-provoking. Especially when Canaan manages to outperform.

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Some miners have decided not to sit idly by. Several companies in the sector are shifting towards high-performance computing infrastructures, particularly data centers for…

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On paper, it makes sense. AI data centers consume massive amounts of energy and computing power — two things miners are well acquainted with. The transition seems natural.

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Related Reading: A Mexican Court Examines a Shocking Bitcoin-Related Murder Case Involving Four Victims

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Read also: New York Town Considers Moratorium on Bitcoin Mining and AI Data Centers

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These companies need to invest in new infrastructures, recruit different tech profiles, and simultaneously manage their traditional mining activities. Juggling both is not easy.

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Then there's the question of timing. If Bitcoin continues to rise, miners who have reduced their crypto exposure to invest in AI could miss part of the upswing.

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Miners who manage to balance both poles could benefit from Bitcoin's bullish cycles while protecting themselves during corrections. But this balance is hard to find.

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The divergence between Bitcoin and miners' stocks says something simple: the market differentiates between holding crypto and managing an industrial company exposed to crypto.

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