The post Here’s why Bitcoin miner stocks are soaring appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) mining stocks are experiencing a remarkable upswing, driven by Bitcoin’s latest price rally past $70,000 and an emerging trend among miners toward AI-focused business models. This resurgence follows a lackluster performance in mid-2024, primarily due to revenue pressures from the Bitcoin halving event. However, recent strategic pivots within the sector and Bitcoin’s ongoing momentum have revitalized confidence, sparking renewed investor interest. Bitcoin price rally and strategic shifts drive mining gains The surge in Bitcoin miner stocks is propelled by two significant factors – Bitcoin’s price rally and the adoption of AI within mining operations. Bitcoin’s price surge above $70,000 has been a key factor driving miner stocks higher. Elevated BTC prices translate to greater revenue for miners, enabling them to hold onto reserves longer and reduce selling pressure on the market, potentially supporting further BTC gains. Bitcoin’s price is anticipated to rise further, with analysts noting liquidity conditions and global interest rates as two primary catalysts shaping Bitcoin’s next major movement. In tandem with Bitcoin’s strength, miners like Core Scientific (NASDAQ: CORZ) are diversifying revenue streams by integrating AI technologies. For instance, Core Scientific recently secured a 12-year partnership with AI hyperscaler CoreWeave, valued at up to $3.5 billion. The company also signed three agreements, adding 70 MW and 112 MW commitments to its initial 200 MW deal, according to The Block.  This AI integration has not only diversified miners’ business models but has also attracted new investment interest. Reflecting this sentiment, Jefferies analyst Jonathan Peterson recently initiated a “buy” rating and set a $19 price target on Core Scientific, highlighting its successful post-bankruptcy transformation.  “Impressive post-bankruptcy comeback story as the company leverages its significant access to power — previously earmarked for Bitcoin mining — to build AI-focused data centers. We expect that many big tech companies will…

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Filed under: News - @ October 29, 2024 1:19 pm