Are Pure Play Bitcoin Miners Going to Reprice Like AI/HPC Miners?

Pure-play bitcoin (BTC) mining stocks are waking up from their slumber aft lagging down those pivoting to the red-hot information halfway business.

Pure-play miners specified arsenic MARA Holdings (MARA) and CleanSpark (CLSK) surged 10% and 17% connected Thursday, starring gains among the CoinShares Bitcoin Mining ETF members.

There are 2 cardinal factors that whitethorn beryllium driving the crisp gains.

The archetypal is the thought that investors could beryllium front-running expectations of a beardown year-end for bitcoin, a play that has historically delivered immoderate of its astir bullish returns. BTC is climbing towards $118,000 pursuing the Federal Reserve's involvement complaint cut, up 2.2% connected Thursday and trading lone 5% beneath its all-time high.

With sentiment improving, miners with important BTC stash connected the equilibrium expanse could beryllium leveraged plays connected bitcoin's imaginable rally to caller records. MARA and CleanSpark stay the sector’s largest BTC holders with 52,477 ($6.2 billion) and 12,703 ($1.5 billion) tokens, respectively. Strategy (MSTR), the world's largest firm proprietor of BTC, is up 7% arsenic good today.

The 2nd operator could beryllium investors rotating profits from stocks successful high-performance computing (HPC) and artificial intelligence (AI), which person enjoyed outsized gains implicit the past months. Iren Energy (IREN), Cipher Mining (CIFR), and Bitfarms (BITF) person each surged, with Bitfarms up 150% successful September alone, IREN gaining implicit 600% since April and CIFR advancing 500% during the aforesaid period.