An interesting trend — one seen on various occasions with gold — is at play this month in the cryptocurrency space: Shares of bitcoin miners are outperforming the largest digital currency to the upside. Just look at the CoinShares Valkyrie Bitcoin Miners ETF (WGMI).
That actively managed ETF settled at $31.64 on September 2, the first trading day of the month. As of midday Friday, September 19, WGMI was trading north of $42. That confirms it notched an impressive rally in short order. WGMI holdings such as Bitfarms (BITF), Iren (IREN) and Cipher Mining (CIFR) are among the names driving the ETF and the broader cryptocurrency mining space higher this month. In order, Iren, Cipher and Bitfarms are the ETF’s top three holdings.
Importantly, it’s not expectations that bitcoin will soon hit highs that’s contributing to upside for WGMI. In fact, bitcoin was up just 0.58% for the week ending midday September 19. That’s better than a loss, but it’s not much to brag about, either. Rather, WGMI’s stellar run is rooted in other fundamental factors. Those include the increasing realization in the investment community that the ETF’s holdings have stories to tell beyond mining of digital currencies.
Why WGMI Is Winning
Indeed, on the unignorable mining activity front, WGMI sees some encouraging signs.
“Bitcoin mining has crossed a historic threshold: For the first time in the network’s 16-year history, the 14-day moving average hashrate surpassed 1 zetahash per second (ZH/s), cementing a symbolic leap in scale as the difficulty retarget at the block height 915264 is set to push mining difficulty beyond 140 trillion,” reported TheMinerMag. “This milestone comes after four halving cycles and more than a decade of exponential growth: from gigahash speeds in 2010 to terahash in 2011, petahash in 2013, exahash in 2016, and now zetahash in 2025. The milestone reflects the relentless industrialization of Bitcoin mining, even as margins remain under pressure.”
Broadening of the industry’s revenue streams adds to the crypto miner thesis. That’s equally relevant for investors considering WGMI. Miners, including WGMI holdings, are showing their viable players in the realms of GPUs and AI.
TeraWulf (WULF), a top-10 holding in WGMI, is an example of a crypto miner leveraging its technology competency for AI gains. That’s benefiting investing, because the stock is soaring this year.
“TeraWulf’s strategic partnerships have been a cornerstone of its recent success. The expanded deal with Fluidstack and the increased backing from Google are seen as thesis-reaffirming for TeraWulf’s business model. These partnerships not only provide stable revenue streams but also lend credibility to TeraWulf’s approach in the competitive landscape of AI and cryptocurrency mining,” noted Investing.com.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
