There were no S&P 500 earnings reactions on Monday, but we want to tell you about a crypto stock that looks ready to take off.
Something significant is happening in the Bitcoin mining industry, and it has very little to do with Bitcoin itself.
For years, these companies have been rewarded for mining the world’s largest cryptocurrency.
However, the market is now rewarding something entirely different - the pivot from Bitcoin mining to high-power computing, the same infrastructure that fuels the AI revolution.
Bitcoin miners already own massive data centers packed with high-efficiency GPUs and cooling systems. That same equipment can either verify Bitcoin transactions or process the enormous workloads that train and deploy artificial intelligence.
Investors have made it clear which path they prefer:
Companies like Marathon Digital $MARA and CleanSpark $CLSK remain pure Bitcoin miners. As the chart shows, nearly 100% of their projected megawatts are still tied to Bitcoin, and their year-to-date returns have lagged the field.
Meanwhile, Cipher Mining $CIFR and Iris Energy $IREN have flipped the switch. They’ve shifted the majority of their capacity toward high-power computing, and their stock performance has exploded.
The trend is undeniable - the more a miner pivots toward AI computing, the stronger its returns.
Cipher Mining is the clearest example of this shift. Once a pure Bitcoin miner, the company has become one of the most aggressive early adopters of high-power computing.
The market has rewarded CIFR in kind:
Since the April lows, Cipher Mining has been the single best-performing stock in the entire Russell 3000 Index, outpacing nearly every other company in the U.S. market.
When you zoom out, this run could just be getting started. The price is breaking above the post-SPAC highs from 2021 for the first time, entering a brand-new primary uptrend.
So long as CIFR holds above 15, the path of least resistance is likely to remain higher for the foreseeable future.
