Investment Firm VanEck Seeks to Capitalize on Bitcoin and AI Mining

• VanEck bets on Bitcoin miners as AI demand rises, favoring firms pivoting to high-performance computing.
• Core Scientific leads Bitcoin mining stocks with a 302% gain, while Marathon Digital drops 28%.
• Bitcoin miners mining 17 BTC per EH/s on average as firms optimize efficiency and cut costs.

VanEck, one of the largest asset managers, has stated that it wants to boost exposure to Bitcoin mining companies, a move that comes after President Trump’s pro-crypto agenda. With Trump focusing on the US’s technology sector, including developments in cryptocurrency and artificial intelligence (AI), investment firms are changing strategies to capitalize on the increasing convergence between these sectors.

According to VanEck, Bitcoin miners are well positioned to leverage this convergence since they are involved in meeting the energy requirements of both Bitcoin mining and AI computing. The firm believes that companies in this space, especially those venturing into the AI/HPC (High-Performance Computing) sector, will experience growth as both sectors require more computational capabilities. Specifically, companies adapting their focus to AI and computing infrastructure, such as Core Scientific, Terawulf, and Hut 8, are expected to perform better than other companies.

Bitcoin Mining Stocks Performance

According to VanEck, the analysis of Bitcoin miners shows that the stocks behave differently with fluctuations in the price of Bitcoin, thus having different degrees of sensitivity to market changes. Some companies, such as Cleanspark and Marathon Digital, are classified as BTC pure-plays and generate most of their revenue from the price of Bitcoin. These miners have exhibited high fluctuations in their activities due to changes in the price of Bitcoin in the short term (30 days) and the long term (360 days).

On the other hand, companies such as Core Scientific (CORZ) and other firms shifting their focus to AI/HPC infrastructure have deliberately spread their risk across Bitcoin price fluctuations. This helps these companies avoid risk and prepares them to capture the benefits of the growth associated with AI demand. VanEck’s investment strategy is to invest in these miners because their ability to adjust to energy needs and computing demands is compatible with trends in artificial intelligence.

Investment Firm VanEck Seeks to Capitalize on Bitcoin and AI Mining 3

The Growing Role of AI and Bitcoin in Mining Valuations

The overall market perception of Bitcoin miners is also changing gradually. Bitfarms (BITF) and Hive Blockchain Technologies (HIVE), which have lower exposure to Bitcoin price volatility, are usually oversold than companies with larger Bitcoin holdings. These miners’ AI/HPC efforts are still largely invisible to the market, creating opportunities for investors to invest in stocks that could be undervalued.

Breaking down expectations based on the Enterprise Value (EV) per Exahash per second (EH/s), VanEck distinguishes Bitcoin mining from AI/HPC investments. This approach reveals the distinction between miners interested in Bitcoin and those interested in AI/HPC mining. The AI/HPC segment is likely to expand further, and, therefore, miners with higher EVs, such as Core Scientific and Bit Digital, are likely to gain.