Investors Continue to Pay Premium for Miners Diversifying into AI and HPC Data Centers
Despite pure-play miners gaining market share, investors continue to pay a premium for those that are diversifying their operations by venturing into Artificial Intelligence (AI) and High-Performance Computing (HPC) data centers. This trend is evident in the recent performance of several publicly traded mining companies.
Marathon, Riot, and CleanSpark See Higher Production Numbers
In September, Marathon, Riot, and CleanSpark all reported higher production numbers compared to August. Marathon Digital, which is now known as MARA Holdings, produced more bitcoin in September than any other month since the April halving. The company’s energized hash rate increased by 5% in September to 36.9 EH/s.
Marathon Monthly Bitcoin Production
| Month | Energized Hash Rate (EH/s) | Mined BTC |
| — | — | — |
| August | 35.0 EH/s | 669 BTC |
| September | 36.9 EH/s | 705 BTC |
Riot Platforms, the third-largest miner by market cap, also saw a significant increase in its mined bitcoin during September, with a 28% jump compared to August. The company estimates that it will hit a hashrate of 36.3 EH/s in the fourth quarter of 2024 and 56.6 EH/s by the second half of 2025.
Riot Platforms Monthly Bitcoin Production
| Month | Energized Hash Rate (EH/s) | Mined BTC |
| — | — | — |
| August | 32.0 EH/s | 545 BTC |
| September | 33.2 EH/s | 699 BTC |
CleanSpark, the fourth-largest miner by market cap, was also affected by Hurricane Helene in September. The company reported that it did not experience any material losses to its infrastructure but had to shut down some operations due to the storm.
Investor Sentiment: Pure-Play Miners Underperform
Despite the increase in production numbers among pure-play miners, their stocks continue to underperform compared to those of companies that are diversifying into AI and HPC. This trend is evident in the share prices of publicly traded mining companies in September. While the largest market capitalization miners saw a 4-9% increase in their stock prices, those with links to AI and HPC saw gains as large as 25%.
September Share Price Performance
| Company | Market Cap | Share Price Change |
| — | — | — |
| MARA Holdings (MARA) | $4.8B | 5% |
| Riot Platforms (RIOT) | $3.5B | 7% |
| CleanSpark (CLSK) | $2.5B | 6% |
| Core Scientific (CORZ) | $1.5B | 25% |
| TerraWulf (WULF) | $1.2B | 22% |
AI and HPC: A Growing Attraction
The shift in investor sentiment towards AI and HPC is not surprising, given the growing demand for these technologies. AI and HPC require a large amount of power, which bitcoin miners have already secured through their existing data centers. This makes them an attractive resource for companies that want to quickly ramp up their businesses.
Creative Means of Raising Funds
In September, several mining companies started using creative means of raising funds to grow their operations. One such example is Cipher Mining, which mined 155 BTC in September and sold 923 bitcoin to buy a 300MW mining site that will be used for HPC hosting. The miner now owns 1,512 BTC.
Conclusion
The trend of investors paying a premium for miners diversifying into AI and HPC data centers continues. While pure-play miners are increasing their production numbers, their stocks continue to underperform compared to those of companies that are venturing into these emerging technologies. As the demand for AI and HPC grows, it is likely that this trend will continue in the coming months.
Investor Takeaways
- Pure-play miners continue to face challenges in raising funds to grow their operations.
- Diversifying into AI and HPC data centers can provide a premium on investment returns.
- The demand for AI and HPC technologies continues to grow, making them attractive investments for companies looking to expand their operations.
Disclaimer
The information provided is for educational purposes only and should not be considered as investment advice. It’s essential to do your own research and consult with financial experts before making any investment decisions.
