Bitcoin miners shift to AI, boost stock prices

What happened: Bitcoin miners Keel Infrastructure (KEEL), Applied Digital (APLD), and Hut 8 (HUT) have shifted their business models towards AI and data centers, driving stock price increases. Analysts have responded bullishly, with price targets ranging from $10 to $124. Ionic Digital, a Bitcoin miner and AI infrastructure firm, filed for a Nasdaq direct listing on June 29. HIVE Digital Technologies (HIVE) reported a sharp revenue surge, attributing it to Bitcoin mining and AI growth. AI investor Leopold Aschenbrenner has taken a significant position in HIVE, while Hyperscale Data (GPUS) signed a $1.2B AI compute deal.

Market impact: The shift from Bitcoin mining to AI data centers is boosting stock prices of former miners, with year-to-date gains ranging from 45% to 135%. This trend is driven by the projected shortfall in data center capacity and increasing demand for AI infrastructure. The AI sector is benefiting from this shift, with companies like Nvidia potentially facing headwinds due to increased competition.

What to watch next: Keel Infrastructure's earnings report on July 15 will provide insights into its AI and data center operations. HIVE Digital Technologies' Q1 2027 earnings, expected in late August, will offer updates on its AI growth and Bitcoin mining expansion. Additionally, the progress of Ionic Digital's direct listing will be closely watched by investors.