Share prices of former bitcoin mining companies now leveraging artificial intelligence surge to unprecedented levels, with Cipher and Hut 8 leading the charge.
High annual performance: Hut 8 shares recorded an increase of nearly 600% year-over-year at the close of the last session.
Billion-dollar hardware alliances: The firm IREN consolidated a $1.6 billion deal with Dell for the supply of Nvidia Blackwell systems.
Large-scale power capacity: TeraWulf acquired land in Kentucky designed to support more than 1 gigawatt of power destined for high-performance computing.
During Wednesday’s session, traditional companies dedicated to Bitcoin miners infrastructure recorded notable double-digit gains in the stock markets. The stock prices of firms like Cipher Digital and Hut 8 achieved new all-time highs on Wall Street due to investor interest in their strategic transition toward AI.
The strategic shift toward data processing
This session’s performance is not an isolated event; it is part of a trend that has extended for several months across the computing sector. Former pure-play mining operators chose to disconnect part of their equipment to redirect their resources and capital toward hyperscale computing and the creation of specialized data centers.
The company that led the sector’s gains was IREN at $67.84, experiencing a +13.48% surge. This movement comes after the firm announced a $3 billion capital raise through convertible notes and a partnership with Nvidia to build a 5-gigawatt data center.
Additionally, the firm’s financial report detailed the acquisition of software services provider Mirantis for $625 million. Corporate data indicates that the recent $1.6 billion contract signed with Dell will serve to supply its cloud contract valued at $3.400 billion.
On the other side, Cipher Digital and Hut 8 consolidated their bullish trend on the New York Stock Exchange. Cipher shares rose 9.5% to trade around $25 per share, while Hut 8 equities advanced nearly 5% to hover near $118.
Corporate alliances and energy diversification
Cipher’s internal documentation reveals that management secured multiple long-term lease contracts with hyperscale firms, including a 15-year agreement tied to Amazon Web Services. Market estimates point out that the company obtained specific financing lines to support the expansion of its new physical facilities.
At the same time, Hut 8 backs its stock market revaluation with an AI-focused data center lease contract with Nvidia. This initial agreement holds a value of $9.8 billion, which could increase above $25 billion if the contemplated renewals are executed.
Quarterly reports from the board of directors describe the company no longer just as a player focused on Bitcoin miners, but as an energy infrastructure platform that dynamically distributes its computing load capacity according to market profitability margins.
Other companies in the ecosystem, such as TeraWulf and Riot Platforms, also reported positive variations in their stock prices with increases of 6% and 3.3% respectively. In TeraWulf’s case, the high-performance computing segment surpassed the traditional cryptocurrency mining division in revenue for the first time during the final quarterly balance sheet. Riot Platforms reported a revenue of $33 million in its data center division, driven by its alliance with tech firm AMD to expand its contracted capacity up to 50 megawatts.
At the close of the analyzed period, Riot Platforms‘ corporate balance sheet reflected the partial sale of its crypto-asset holdings to fund infrastructure projects, although the entity still retains an institutional inventory valued at approximately $1.2 billion in BTC.
According to the session’s market metrics, Riot stock accumulates a positive year-to-date return of over 100%, contrasting with Bitcoin’s price which stood at $75,000 after experiencing a 13% correction over the same period.