Bitcoin Mining Firms Transform into AI Data Centers... 'Stock Prices Defy the Trend' [Crypto Briefing]

[Financial News] While the virtual asset market, including Bitcoin (BTC), continues to weaken, mining companies are seeing their stock prices rise. After last year's 'Bitcoin halving' (reduced mining rewards) led to declining profitability, firms transitioning to artificial intelligence (AI) data center businesses have drawn attention by signing large-scale contracts with big tech companies.
According to Investing.com, a global financial information platform, the slowdown in the virtual asset market has also dragged down the stock prices of cryptocurrency exchanges such as Coinbase and Bitcoin-holding companies like Strategy Inc. Over the past month, the price of Bitcoin (BTC) has dropped by 14.5%, while Coinbase and Strategy Inc. have fallen by 13.5% and 24.73%, respectively.
During the same period, mining companies that have embraced the AI data center theme—such as IREN Limited (34.26%), Cipher Mining Inc. (54.83%), and Bitfarms Ltd. (36.54%)—have continued to see strong stock performance. Cipher Mining Inc. and IREN Limited have each signed major supply contracts with Amazon.com, Inc. and Microsoft, fueling sharp increases in their share prices.
The shift by mining companies into the AI sector is driven by declining profitability. In 2024, the Bitcoin halving reduced block rewards by half, and intensifying competition has steadily increased mining difficulty. Additionally, securities analysts note that mining infrastructure shares significant structural similarities with AI data centers, particularly in terms of power capacity and large-scale server infrastructure.
Hyeon Kyeong Yang, a researcher at iM Securities, explained, “While rising Bitcoin (BTC) prices can partially offset declining profitability, the potential for further price increases, which surged from 2024, appears limited.” Yang added, “Mining companies that previously endured the 'Crypto Winter' now need to find new sources of revenue.” She further noted, “Over the past year, Bitcoin mining firms have issued $11 billion in convertible bonds to raise funds for AI infrastructure investments, accelerating their transition to data centers.”
Shinhan Securities also assessed that IREN Limited is now more akin to an AI data center company than a Bitcoin mining firm. Senior researcher Heo Seonggyu at Shinhan Securities stated, “IREN Limited’s total secured and planned AI data center power capacity is estimated at approximately 2.15 GW,” adding, “Their strategy of procuring Graphics Processing Units (GPU) at low interest rates and selling them via cloud services is also effective.”
However, concerns have been raised about the rapid rise in share prices. While Bitcoin mining facilities can be built within 6 to 12 months, constructing an AI data center—including design and power infrastructure upgrades—typically requires at least two to three years.
Yang cautioned, “Expectations for mining companies have already been quickly priced in, but there is uncertainty regarding the monetization timeline.” She also warned, “Investors should be mindful of the equity dilution risk stemming from large-scale convertible bond issuances.”

elikim@fnnews.com Kim Mi-hee Reporter