Several Bitcoin mining stocks like TeraWulf (WULF), IREN (IREN), and Hut 8 (HUT) are doing well this year, even as the crypto market crash intensifies.
Top Bitcoin Mining Stocks are Doing Well
Hut stock price jumped to $60 on Wednesday, up by 1,575% from its lowest level in 2023, with its market capitalization soaring to over $6.5 billion.
Similarly, TeraWulf stock jumped to $17, its highest level since 2021, while IREN is trading at $45.45, up sharply from last year’s low of $5.
The main reason why these Bitcoin mining stocks are thriving is that they are no longer pure-play mining companies. Instead, they have leveraged their scale to venture into the fast-growing data center business.
The companies are now building up their large mining operations to also offer data center solutions to some of the largest companies in the world as demand for computing power rise.
IREN stock has jumped as the management has hinted at strong revenue growth by providing these solutions to other blue-chip companies. It reached a $9.7 billion deal to provide computing power to Microsoft. It is also working to attract more companies in the future.
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As a result, Wall Street analysts believe that IREN’s annual revenue will jump by 103% this year to over $1.04 billion. It will then jump by 175% next year to over $2.5 billion.
Meanwhile, Hut 8 stock price jumped this year after the company reached a 15-year deal with Anthropic worth over $7 billion. FluidStack, a company associated with Google, is also participating in the deal, which may be extended by another 7 years. As a result, analysts expect that its 2025 revenue rose by 50% to $242 million, while its 2026 figure will jump by 76% to over $426 million.
TeraWulf stock price has soared because of its massive deal with FluidStack. This deal, which is valued at over $9.5 billion, involves a 168 megawatt commitment, with TeraWulf holding most of the shares in the joint venture.
Data Center Spending is Accelerating
Analysts are optimistic that these companies will continue thriving as data center spending accelerates. For example, companies like Microsoft, Google, Amazon, and Meta Platforms have hinted that they will spend over $650 billion in capital expenditure this year. Some of these funds will be used internally, while some will be outsourced to such companies.
IREN, TeraWulf, and IREN have mostly copied what CoreWeave did. CoreWeave was originally a Bitcoin mining company that saw an opportunity in the data center spending boom. It ended its mining operations and is now one of the biggest companies in the data center industry with a market capitalization of over $51 billion.
On the other hand, Bitcoin mining companies that largely ignored the transition to data centers have struggled amid the ongoing crypto market crash.
For example, MARA, which was the biggest mining company, has dropped to $8, its lowest level since 2023. Similarly, Riot Holdings has only rallied after the management caved and embraced the technology. It is now under pressure from a top activist investor to embrace and accelerate the data center boom.
Expanding their businesses to the sector is important because the Bitcoin price is always volatile, which mostly affects their businesses. Also, Bitcoin goes through a halving event every four years, which reduces the block rewards by half.
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