Bitcoin Mining Stocks, Has the AI Contract Effect Worn Off?...Stock Price Growth Rate Plummets from 24% to 10%

▲ Bitcoin (BTC), Cryptocurrency Mining, Artificial Intelligence (AI), Semiconductors, Bear Market / AI Generated Image

The artificial intelligence (AI) pivot strategy by the Bitcoin (BTC) mining industry is no longer as effective on Wall Street as it once was. While contract sizes have grown, the average stock price increase on the day of announcement has sharply fallen from approximately 24% to 10%.

According to Cointelegraph on August 6 (local time), Blocksbridge Consulting analyzed 25 AI and high-performance computing (HPC) infrastructure contracts announced from June 2024 to August 2026. The average stock price increase on the day of announcement for initial contracts was about 24%, but recent contracts saw only about 10%. The median stock price increase also roughly halved during the same period.

Conversely, the annualized revenue per megawatt of contract has increased. Although the profitability of AI infrastructure contracts has improved, investors are no longer solely boosting mining stocks based on contract amounts. A clear trend has emerged where stock prices are reflected only after verifying contract execution capabilities, financing plans, and long-term profitability.

Early AI contracts caused mining stocks to surge explosively. When Core Scientific announced its first hosting contract with CoreWeave, its stock price jumped over 40%. Applied Digital's first CoreWeave lease contract led to an approximately 49% increase, and TeraWulf's first Fluidstack contract led to an approximately 60% increase.

Reactions to recent large-scale contracts have cooled significantly. TeraWulf's 401-megawatt lease contract with Anthropic only boosted its stock price by about 5%. CleanSpark's $6.6 billion AI hosting contract announcement also saw an increase of about 9%. Bitdeer rose about 12% immediately after announcing its Tydal contract but gave back all gains by market close.

The TEM AI Infrastructure Growth Index, which tracks AI data centers and digital infrastructure companies, has fallen by approximately 28.5% from its June high. The Philadelphia Semiconductor Index also dropped about 17% from its July high. While demand for AI infrastructure remains strong, Wall Street is now selecting Bitcoin mining stocks based on actual business performance rather than contract announcements.

[Key Article Summary]

-The average stock price increase on the day of AI contract announcements for Bitcoin mining stocks sharply dropped from approximately 24% to 10%.

-CleanSpark's $6.6 billion contract and TeraWulf's 401-megawatt contract also saw single-digit stock price increases.

-The TEM AI Infrastructure Growth Index has fallen by approximately 28.5% from its June high.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*