Crypto mining stocks deliver triple-digit gains, beating bitcoin amid AI infrastructure shift

Crypto mining equities have delivered strong performances amid choppy crypto price action, with several major mining stocks significantly outpacing Bitcoin's price appreciation over the past year.

Riot Blockchain and Hut 8 Mining have seen their stock prices surge 110% and 211%, respectively, over the last 12 months, compared to Bitcoin's 65% gain during the same period. This outperformance suggests investors are pricing in expectations beyond Bitcoin's price trajectory, including operational efficiency improvements, capacity expansion plans, and diversification into adjacent revenue streams.

The mining sector's market cap gains suggest these stocks are functioning as leveraged bets on Bitcoin.

A driver of mining stock interest has been a pivot toward AI and high-performance computing infrastructure. Several mining companies have begun converting portions of their facilities to host AI workloads, creating new revenue streams independent of Bitcoin price and mining difficulty. This strategic shift allows miners to monetize their existing infrastructure and power contracts while reducing concentration risk from Bitcoin-only operations. The AI compute narrative has attracted institutional capital seeking exposure to both crypto and artificial intelligence trends.

Last week, JPMorgan analysts said the "move into AI is offering miners more stable and higher-margin revenue streams compared to the more volatile and increasingly less profitable business of bitcoin mining," prompting investors to value them on different fundamentals than bitcoin itself.

Mining stocks have also benefited from growing institutional interest in Bitcoin exposure through equity markets. For investors restricted from holding Bitcoin directly or preferring traditional equity structures, mining stocks offer a regulated proxy with operational upside.

The sector has seen renewed attention from Bitcoin treasury companies, with the cumulative market cap of corporate Bitcoin holders reaching $129 billion. This includes recent high-profile entries like American Bitcoin Corp, launched in March through a partnership between the Trump family and Hut 8 Mining, where Hut 8 holds approximately 80% while the Trump family retains 20%.

These corporate treasury plays often combine mining operations with balance sheet Bitcoin accumulation, creating a hybrid investment thesis that appeals to both crypto-native and traditional investors.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.