Bitcoin mining stocks could see significant growth in 2025, according to a report by HC Wainwright & Co.
Equity research predicts that the market cap of Bitcoin mining companies will exceed $100 billion in 2025, up from $36 billion in 2024 – an increase of nearly 200%.
This increase is due to the development of mining economics and the ongoing Bitcoin (BTC) bull market, according to analysts. The report identifies key factors driving optimism, including Bitcoin's recent price appreciation and the continued success Bitcoin ETF's spot rate is in the US
These ETFs, agreed earlier in 2024, have brought in $35.3 billion in net inflows and currently hold over 1 million BTC, representing 5.5% of the circulating supply.
Bitcoin mining including the use of special computers to verify transactions and secure the network. Miners are rewarded with new Bitcoin, but the process has significant energy and operational costs.
According to the report, miners are currently profitable, with production costs well below Bitcoin's market price of around $96,000.
Bitcoin to $225,000?
The report predicts that Bitcoin will reach $225,000 by the end of 2025, boosted by increasing institutional adoption, regulatory clarity under the new US administration, and a greater shortage after the recent halving.
This price target implies a total market cap of $4.5 trillion for Bitcoin, or about 25% of gold's market cap.
Large miners with large Bitcoin reserves, known as the “Big 3” – Marathon Digital, CleanSpark, and Riot Platforms – are expected to outperform their competitors. These companies, which are very sensitive to Bitcoin price movements, also show a competitive valuation compared to AI-connected miners.
The report suggests that mining stocks could surpass Bitcoin's price gains in 2025, providing opportunities for investors seeking exposure to the growing digital asset market.
Bitcoin miners adopt AI
Bitcoin miners are also leveraging their expertise in power assets and high-performance computing to meet the growing demand. AI infrastructure.
The McKinsey report, cited by analysts, expects global data center demand to grow to 152 GW by 2030, up from 57 GW in 2023. Miners are well-positioned to benefit due to their large, low-cost energy capabilities .
Currently, miners operate 6.1 GW of data center capacity, with an additional 4.6 GW expected to be in development by 2025.
Seven miners in the region are expected to deploy a combined 5 GW of power for AI and high-performance computing workloads by 2026, significantly reducing the typical four-year timeline for greenfield projects.
