Are Crypto Mining Stocks Becoming More Profitable Investments Than Bitcoin?

Bitcoin has been one of the most successful assets over the past decade, but crypto mining stocks may be the better opportunity moving forward.

Bitcoin gained more than 25,000% over the past decade, but it now has a $2 trillion market cap. A higher market cap makes it more difficult to generate the strong price movements that Bitcoin investors saw in 2017 and from late 2020 into early 2021.

Crypto Miners Are Pivoting To Artificial Intelligence

Crypto mining stocks like IREN and Cipher Mining weren’t even around for Bitcoin’s 2017 surge. IREN and Cipher Mining were founded in 2018 and 2021, respectively.

These stocks have smaller market caps, which means they don’t need as much capital as Bitcoin to double in value.

However, market cap sizes aren’t the only factor that has turned crypto mining stocks into the superior option.

The big catalyst that has helped crypto mining stocks outperform Bitcoin is their pivot toward artificial intelligence.

Even industry giants like Kevin O’Leary now consider crypto mining stocks to be a premium asset class.

As AI spending continues to increase, and big tech companies continue to indicate that they will ramp up their spending, companies that can serve them well will have an incredible advantage.

IREN, Cipher Mining, and Terawulf are some of the crypto miners that have announced big deals with tech companies for AI computing power.

Those three stocks have produced year-to-date gains of 496%, 328%, and 155%, respectively, compared to Bitcoin’s 11% gain over the same stretch.

Terawulf Stock Price Throughout the Second Half of 2025. Source: Google Finance

Multiyear and multibillion-dollar deals have significantly changed how investors view mining stocks over a short period.

Their crypto mining efforts have given them the necessary infrastructure to handle AI demands.

These assets are also more volatile than Bitcoin. A 2% gain or loss for IREN is a relatively tame day, while 2% price swings are harder to find for Bitcoin.

CIFR and WULF have been less volatile than IREN over the past month, but those two stocks still have plenty of 5%+ price movements in both directions.

Bitcoin Still Plays A Large Role In Overall Revenue

Although the pivot to AI has been the big story for many crypto mining stocks, these companies still rely on their crypto mining to generate revenue and profits.

They are using crypto mining to fund their AI data centers, which results in more attractive margins when big tech deals arrive.

As more multibillion-dollar deals arrive, crypto will have less of an influence on crypto mining stocks’ earnings, and this trend is already taking shape.

Bitcoin has lost 17% over the past month, while the CoinShares Bitcoin Mining ETF, a fund that tracks various crypto mining stocks, is up by 3% during the same stretch.

The fund’s 137% year-to-date gain further distances itself from Bitcoin, but the 3% gain against a 17% loss over the past month is quite the shock. It represents a decoupling, where Bitcoin’s price movements no longer dictate what will happen to crypto mining stocks.

CoinShares Bitcoin Mining ETF Price Year-To-Date. Source: Google Finance

Normally, these two assets have moved up and down in lockstep, but the flurry of big tech deals over the past few months has minimized their long-term reliance on crypto mining for revenue growth.

More Investors Are Paying Attention To Crypto Mining Stocks

Although crypto mining stocks had a relatively small audience just a year ago, they have become popular assets due to their recent gains and connection to artificial intelligence. This rising attention is notable because it’s similar to how Bitcoin first went mainstream in 2017.

Bitcoin had a $16 billion market cap on January 1, 2017, and it ended the year with a $237 billion market cap. Ripple was actually the bigger winner, increasing its market cap from $231 million to $89 billion.

Crypto mining stocks are starting to receive attention from analysts and TV personalities, which can result in similar gains over the next few years.

Compass Point, Roth Capital, and Cantor Fitzgerald are some of the firms that recently hiked their IREN price targets.

IREN has the most attention at the moment, but other crypto mining stocks have been garnering price target upgrades as well.

Even though crypto mining stocks have delivered tremendous year-to-date returns, they haven’t become mainstream like Bitcoin and the Magnificent Seven quite yet.

When that level of attention arrives, the crypto mining stocks may further extend their lead over Bitcoin’s recent gains.

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