The CoinShares Bitcoin Mining ETF (WGMI ) is positioned as an earnings play as a bevy of the ETF’s holdings, including several of the largest components, are slated to deliver quarterly results.
Cipher Digital (CIFR), WGMI’s largest holding, got the ball rolling Tuesday and while the company’s loss widened on a year-over-year basis, CEO Tyler Page sounded bullish on Cipher’s data center plans.
“On the business development front, we built on the strong momentum from last year by signing our third AI data center campus lease with an investment-grade Hyperscale tenant in the first quarter,” said Page in the earnings statement. “Looking forward, we will continue to build on this momentum and establish ourselves as the leading HPC development platform.”
Commentary can and does vary from company to company, but Cipher’s sentiment around its artificial intelligence (AI) pivot could prove instructive as this week unfolds.
AI Top of Mind for WGMI Investors
In rapid fashion, some of WGMI’s biggest holdings have evolved from pure play cryptocurrency miners to credible players on the artificial intelligence (AI) infrastructure state. That much is confirmed at the economic level.
“The four pure-play miners reporting this week have booked more than $30 billion in AI and high-performance computing (HPC) contracts. Industry-wide, public miners now hold over $70 billion in cumulative AI agreements,” reported Be In Crypto.
On the crypto mining-to-AI update front, this is in fact an important week for WGMI investors and that extends beyond Cipher. Hut 8, TeraWulf, and Core Scientific each deliver quarterly updates and they too, are all players in the crypto-to-AI evolution. In fact, those three stocks are all top 10 WGMI components.
This week has already brought evidence of the importance of the AI pivot as it relates to WGMI. On Tuesday, IREN Ltd. (IREN), the ETF’s third-largest holding, announced the $625 million acquisition of Mirantis, Inc., a cloud infrastructure provider, confirming the importance of AI to companies that previously focused on cryptocurrency mining. Mirantis is also a vender partner of the NVIDIA AI Cloud Ready Initiative.
“IREN is delivering AI Cloud services at scale across a range of workloads. As deployments grow, ensuring reliable provisioning, monitoring and support becomes increasingly important. Mirantis strengthens these capabilities with deep experience in cloud infrastructure and enterprise operations,” according to a statement revealing the transaction.
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