Introduction to Bitcoin Miners
Bitcoin miners are outperforming the most important digital currency, and this trend isn’t latest. It has been seen before with gold, and now it’s happening within the cryptocurrency space. The CoinShares Valkyrie Bitcoin Miners ETF (WGMI) is an excellent example of this trend. This actively managed ETF has been on a powerful rally, with its price increasing from $31.64 on September 2 to over $42 by mid-September.
What’s Driving the Rally?
The rally isn’t driven by expectations of bitcoin reaching latest highs. In fact, bitcoin’s price has been relatively stable, with only a 0.58% increase for the week ending mid-September. Instead, the rally is driven by other fundamental aspects, including the increasing realization that bitcoin miners have stories to inform beyond mining digital currencies. The ETF’s holdings, equivalent to Bitfarms (BITF), Iren (IREN), and Cipher Mining (CIFR), are among the many names driving the ETF and the broader cryptocurrency mining space higher.
Why WGMI Is Winning
The bitcoin mining space is seeing some encouraging signs. For the primary time within the network’s 16-year history, the 14-day moving average hashrate has surpassed 1 zetahash per second (ZH/s). This milestone reflects the relentless industrialization of Bitcoin mining, whilst margins remain under pressure. Additionally, the broadening of the industry’s revenue streams is adding to the crypto miner thesis. Miners, including WGMI holdings, are showing their viability as players within the realms of GPUs and AI.
Diversification of Revenue Streams
TeraWulf (WULF), a top-10 holding in WGMI, is an example of a crypto miner leveraging its technology competency for AI gains. The company’s strategic partnerships, equivalent to its expanded take care of Fluidstack and increased backing from Google, are providing stable revenue streams and lending credibility to TeraWulf’s approach within the competitive landscape of AI and cryptocurrency mining.
Conclusion
In conclusion, the CoinShares Valkyrie Bitcoin Miners ETF (WGMI) is outperforming the most important digital currency, driven by fundamental aspects equivalent to the increasing realization that bitcoin miners have stories to inform beyond mining digital currencies. The ETF’s holdings are driving the rally, and the broadening of the industry’s revenue streams is adding to the crypto miner thesis. As the cryptocurrency mining space continues to evolve, it’s going to be interesting to see how WGMI and its holdings perform in the longer term. For more information on cryptocurrency and ETFs, visit the CoinShares Crypto ETF Hub.
