In a widely documented phenomenon, scores of cryptocurrency miners are evolving into artificial intelligence (AI) data center hyper-computing plays, revving shares of plenty of those stocks. Among ETFs, the CoinShares Bitcoin Mining ETF (WGMI ) is the epicenter of investors’ ebullience for that metamorphosis. The CoinShares fund is up more than 80% year-to-date and has more than quadrupled in value over the past year, confirming markets are bullish on companies diversifying or outright eliminating exposure to cryptocurrency mining in favor of heavier AI tilts.
Read more: AI Could Eventually Be a Huge Chunk of Crypto Miners’ Revenue
WGMI’s active management adds to the allure of the ETF — a relevant consideration, because not all crypto miners are transitioning to AI in similar fashion. Some are still stuck in neutral on that front. As an active fund, WGMI can more rapidly express views on former crypto miners that are hitting AI marks, while avoiding or limiting exposure to those that have work to do.
WGMI Isn't Done Yet
The AI pivot embraced by WGMI member firms is obviously rewarding investors, and it’s all the more important at a time when bitccoin and other digital assets are scuffling.
“When the underlying commodity is weak but the producers of that commodity are screaming higher, something structural is happening underneath the spot price. For Bitcoin, that something is post-halving economics colliding with a hash rate arms race and an AI infrastructure pivot that has rerated mining companies as something closer to data center operators than levered crypto bets,” reported John Seetoo for 24/7 Wall Street.
Some of WGMI’s 27 holdings are deftly navigating the AI transition and investors are reaping the rewards. That confirms the benefits at the intersection of evolving crypto miners and active management.
“Companies that built gigawatts of power-dense infrastructure to mine Bitcoin are now leasing that capacity to hyperscalers and GPU tenants. IREN, Core Scientific, TeraWulf, and Applied Digital have all signed or expanded high-performance computing deals, and the market is paying a data center multiple for that revenue. The mining ETFs are riding both engines at once,” according to 24/7 Wall Street.
All four of the stocks mentioned above are WGMI holdings. Iren, TeraWulf and Core Scientific rank as the ETF’s second-, third- and fourth-largest holdings, respectively.
As just one example of the vibrancy in the WGMI lineup, shares of TeraWulf surged 13% on May 26, after the company announced plans for a new one gigawatt facility to service AI customers. That adds to WGMI’s status as a right place, right time ETF.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
