Hut 8 and IREN’s big-spending AI contracts trigger a surge! Bitcoin mining stocks jump collectively by more than 11%

Bitcoin mining firms Hut 8 and IREN announced major AI infrastructure contracts on Monday, driving up as much as 11% or more in a single day for up to 5 mining stocks. Hut 8 signed a 15-year, $9.8 billion AI data center leasing contract, while IREN disclosed a $2.8 billion cloud services order. Industry estimates say miners still need to invest about $50 billion more to achieve their AI transformation.
(Background: Cashing in on the AI transformation wave! Bitcoin miner Hut 8 signs a $9.8 billion mega deal, with its stock price surging 33% in a single day to a record high.)
(Additional background: A VanEck report highlights pain points for Bitcoin miners’ AI transformation: a $50 billion funding gap—only with strong execution can they fight back.)

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• IREN, Hut 8, Cipher, CleanSpark, MARA all surge across the board
• Tech stocks rebound in sync, semiconductor index bounces 2%
• AI transformation lifts valuations; $50 billion funding gap still to be filled

Bitcoin mining firms Hut 8 and IREN announced major AI infrastructure contracts one after another on Monday, lifting at least 5 mining stocks by more than 11% during intraday trading. Investors are backing the narrative of “Bitcoin miners’ AI transformation” with real money.

Hut 8 said it has signed a 15-year leasing contract for its AI data center campus, totaling $9.8 billion. IREN, meanwhile, disclosed in an SEC filing that it has entered into a $2.8 billion cloud services order with an AI developer.

IREN, Hut 8, Cipher, CleanSpark, MARA all surge across the board

IREN, Cipher Digital, CleanSpark, Hut 8, and MARA Holdings—these five companies—saw their share prices each rise by at least 11% in early trading on Monday. Both companies started out as Bitcoin miners, and after mining economics gradually weakened, they accelerated their shift to AI infrastructure and cloud computing.

IREN currently expects that its AI cloud business will generate more than $4 billion in annual recurring revenue by the end of 2026.

The Energy Mag’s TEM AI Infrastructure Growth Index tracks 20 companies across Bitcoin mining, new cloud, and AI infrastructure. The index rose 1.4% on Monday and has accumulated gains of more than 12% over the past week.

Tech stocks rebound in sync, semiconductor index bounces 2%

The rally in Bitcoin mining stocks moved in tandem with the broader tech stocks’ recovery. The Nasdaq Composite rose 0.9% intraday on Monday. The Philadelphia Semiconductor Index, which represents the chip-manufacturing industry, rebounded 2% after entering a technical bear market in the prior week (down 20% from its peak).

AI transformation lifts valuations; $50 billion funding gap still to be filled

According to an analysis by Blocksbridge Consulting, Bitcoin mining stocks have experienced extreme volatility this year. AI transformation has driven a re-pricing of valuations across the entire sector, but it has also drawn investors’ attention to insider selling.

In a recent Miner Weekly newsletter, Blocksbridge noted that insider selling by TeraWulf, Riot Platforms, Core Scientific, and Cipher Mining has raised investor questions: whether the AI frenzy has pushed share prices high enough for management to cash out.

Blocksbridge estimates that the entire mining industry still needs to invest about $50 billion more to fulfill its AI ambitions, with IREN’s funding gap the largest, at about $21.1 billion.