Bernstein: Large mining companies are willing to raise funds for computing power expansion rather than selling coins, but investors are more optimistic about the share prices of mining companies with AI industries

BlockBeats news, September 18, analysts at market research and brokerage firm Bernstein said that in the context of Bitcoin price fluctuations, due to increased confidence in the data center theory, the stock prices of mining companies such as Core Scientific, IREN and Terawulf have outperformed competitors that only focus on Bitcoin mining.

Analysts said that the stock prices of mining companies focusing on artificial intelligence have performed well, thanks to investors' increased confidence in the diversification of their business models, higher valuation multiples, more predictable revenue sources, and greater flexibility in the turbulent Bitcoin market. Although their hash rate growth may generally be slower than that of single Bitcoin mining companies, mining companies focusing on artificial intelligence are simultaneously expanding their data center infrastructure, which provides additional opportunities for the fast-growing field of artificial intelligence.

Large public Bitcoin mining consolidators such as Marathon, Riot Platforms and CleanSpark, which hold a large amount of Bitcoin on their balance sheets, have sold a lower proportion of their mining proceeds this year compared to the same period in 2023, with the above-mentioned miners retaining 100% of their production in August. Analysts said: "This shift shows that large miners are willing to raise funds or accept equity dilution to invest in capital expenditures and expand their market share in Bitcoin mining, rather than liquidate their Bitcoin holdings. At present, they view artificial intelligence as a distraction and are not shifting their production capacity to artificial intelligence.