Bitcoin mining companies recover, AI bets determine the outcome

According to TheMinerMag, after a sharp sell-off for most of the first quarter, bitcoin miners' stock prices are showing new signs of recovery - as bitcoin prices topped $100,000, mining stocks began to rebound. But the strongest rally has focused on mining companies that are actively pursuing high-performance computing (HPC) or AI hosting initiatives, as investors begin to choose based on growth potential beyond Bitcoin.

Previously, influenced by geopolitical tensions and broader market volatility, the price of Bitcoin rebounded from a low of $75,000 in early April. During the downturn, the performance of most listed mining companies was far inferior to that of Bitcoin. BitDeer (BTDR), Cipher (CIFR), Core Scientific (CORZ), and Terawulf (WULF) all fell more than 50% from January to early April.

But since Bitcoin bottomed out on April 7, the rally has been swift and selective. Bitdeer, the stock that had previously sold the hardest among the miners, has risen nearly 80%. Core Scientific, Terawulf, Cipher, and Iris Energy (IREN) all rose by more than 50%, outpacing Bitcoin's own rally. Notably, these companies have launched or committed to scaling their data centers to support AI or high-performance computing (HPC) workloads.

In contrast, Bitcoin-focused miners that lack a diversification strategy have been slower to recover. While most companies have rebounded from their April lows, miners that lack a compelling growth narrative (especially in AI or hosting) have clearly not rebounded as fast over the past month. That being said, CleanSpark is the only miner to maintain year-to-date gains with continued operational execution and selective expansion initiatives, but it is also treading cautiously.

The information seems quite clear: although the market is once again boosting Bitcoin mining companies, it is selective, favoring those with forward-looking strategies and diversified infrastructure growth. In this new phase of the cycle, investors seem increasingly focused on which infrastructures mining companies are building for the next decade rather than just for the next halving.