Bitcoin Miners at a Crossroads: Gain Market Share or Go All-In on AI?

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As the senior analyst at CoinDesk, James specializes in Bitcoin and the macro environment. Previously, his role as a research analyst at Swiss hedge fund Saidler & Co. introduced him to on-chain analytics. He monitors ETFs, spot and futures volumes, and flows to understand Bitcoin.

Investors continue to pay a premium for miners diversifying into AI and HPC data centers, despite pure-play miners gaining market share.Marathon produced more bitcoin in September than in any other month since the April halving.

However, investors aren't paying a premium for their stocks, as they continued to underperform in September. Meanwhile, miners putting focus on AI and HPC computing, such as Core Scientific , TerraWulf and IREN , beat bitcoin in September.The shift in investor sentiment isn't surprising, as the halving in April – which cut by 50% the reward for mining BTC – has made mining more competitive with narrower profit margins.

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