Bitcoin Mining Shifts: 3 Stocks Leveraging AI for Future Growth

Bitcoin Mining on the Rise? 3 Stocks with High AI Potential

According to BeInCrypto, despite the recent downturn in Bitcoin prices, certain cryptocurrency mining stocks are poised for growth, particularly those integrating artificial intelligence (AI) into their operations. Companies like Nebius, IREN, and Terawulf are shifting their focus from traditional Bitcoin mining to AI-driven initiatives, which could provide a significant boost in revenue.

"Analysts remain bullish on AI-focused mining stocks despite Bitcoin weakness," stated the report.

Nebius (NBIS)

Nebius has transitioned to AI data centers, addressing energy and computing shortages faced by tech giants. The company has made substantial investments in two brands that leverage AI to attract more customers, including Avride, an autonomous vehicle developer, and TripleTen, an EdTech firm. Recently, Nebius secured a five-year contract with Meta Platforms valued at approximately $3 billion, following a billion-dollar deal with Microsoft.

Although these partnerships have not yet fully reflected in current revenue figures, Nebius reported a remarkable 355% year-over-year revenue growth in Q3. Goldman Sachs has reaffirmed its buy rating for the stock, raising the price target from $137 to $155 per share, citing a strong demand-supply imbalance in AI.

IREN (IREN)

IREN focuses exclusively on providing AI cloud services, similar to Nebius, but boasts a 3.2-gigawatt pipeline that allows for large-scale AI data center production. The company has secured a significant five-year contract with Microsoft worth $9.7 billion, granting Microsoft access to 200 megawatts. Once IREN fully utilizes its pipeline, it can support up to 16 contracts like the one with Microsoft.

Currently, IREN still relies heavily on Bitcoin, which accounted for 97% of its revenue in Q1 of FY 2026. However, the Microsoft contract is expected to drive substantial growth in AI cloud services. Analyst Darren Aftahi from Roth MKM has confirmed a buy rating for IREN, setting a price target of $94, indicating potential for more than a doubling from current levels.

Terawulf (WULF)

Terawulf is another cryptocurrency miner that, like IREN, is heavily reliant on crypto but has secured significant technology contracts that lay the groundwork for an AI focus. The company plans to increase its contract capacity by 250 to 500 megawatts annually. For context, Terawulf has allocated 168 megawatts to Fluidstack for $9.5 billion under a 25-year lease agreement, supported by Google.

This lease translates to an annual revenue of $380 million, or approximately $2.26 million per megawatt per year. With this conversion rate, Terawulf's plan to increase capacity could yield an additional $565 million to $1.13 billion in recurring annual revenue. Despite the impact of Bitcoin prices on Q3 results, long-term AI data centers have captivated investors. Compass Point maintains a buy rating for Terawulf with a price target of $17.

Key Takeaways

• Nebius has shifted focus to AI, securing major contracts with Meta and Microsoft.
• IREN is transitioning from Bitcoin dependency, with a significant Microsoft deal enhancing its AI cloud services.
• Terawulf is expanding its capacity and leveraging technology contracts to support its AI initiatives.

In summary, while Bitcoin mining faces challenges, the integration of AI presents new opportunities for growth in the sector, as highlighted by the developments in Nebius, IREN, and Terawulf.

Sources:

• Bitcoin Mining vor Aufschwung? 3 Aktien mit hohem KI-Potenzial