Don't want to just Cryptocurrency Speculation? Mining and AI are hot in combination, and these two mining company stocks are not to be ignored!

BTCMining industry transformation AI, increased investor attention

BTC recently broke through the $70,000 mark, once again igniting market enthusiasm for cryptocurrency. At the same time, the mining industry is also seeing new investment opportunities, especially for mining companies that are transitioning into the artificial intelligence (AI) industry. After a period of weakness due to the BTC halving event in mid-2024, companies like Core Scientific (NASDAQ: CORZ) and Iris Energy (NASDAQ: IREN) are repositioning themselves and targeting the high-growth AI market. These two stocks are leveraging their extensive infrastructure to enter the high-performance computing industry and have become strong investment options for BTC mining and AI integration.

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Core Scientific: Strategic Transformation, Collaborating with AI Giants

Core Scientific, with a market capitalization of $3.7 billion and an enterprise value of $4.22 billion, is at the forefront of this transformation. The company has regained the attention of investors, especially institutional investors who hold 55% of its shares. The key to Core Scientific's shift to AI lies in a 12-year partnership with AI supercomputing provider CoreWeave, which is expected to generate up to $3.5 billion in revenue. Through this protocol, CoreWeave consolidates its high-performance computing capacity of 382 megawatts at Core Scientific's five sites, solidifying Core Scientific's position in the rapidly expanding AI-driven computing industry.

Jefferies' analyst pointed out that if this partnership could be successfully launched, it might attract other large tech companies to ensure that Core Scientific becomes an important participant in the AI industry. In order to further strengthen its financial position, Core Scientific announced the issuance of $400 million 2029 convertible senior notes, with an option to issue an additional $60 million.

These notes will accumulate Interest every six months, providing holders with flexibility for conversion or redemption. The funds raised will be strategically used to repay $267 million in high-interest debt, reducing the company's Interest Rate from 12.5% to a manageable 3%. This initiative not only strengthens Core Scientific's balance sheet, but also increases its cash reserves, providing flexibility for the company to expand its high-performance computing capabilities and pursue future acquisitions and capital investments.

Core Scientific's strategic transformation towards AI applications provides an attractive growth opportunity for investors looking to enter the AI and Mining industries. As of the time of completion, the company's stock price is $12.65.

Image source: Google Finance CORE Scientific stock price trend chart

Iris Energy: Invest in high-performance GPUs to explore new revenue

Iris Energy strategically expands its capabilities to the AI industry, introducing new value layers to its revenue sources and enhancing growth potential, with a $2 billion market capitalization and a $1.59 billion enterprise value. According to StockAnalysis, institutional investors hold 44% of Iris Energy, supporting the company's ambitions in AI. The company generated $3.1 million in revenue from its AI cloud services in the 2024 fiscal year, demonstrating initial success in this emerging industry.

Recently, Iris Energy invested $43.9 million to purchase 1,080 units of NVIDIA H200 GPU, increasing its total high-performance GPU count to 1,896. This significant investment is expected to generate $32 million in annual hardware revenue, diversifying the company's income sources beyond traditional Bitcoin Mining.

Iris Energy's plans also include exploring AI data center opportunities at its 1.4 GW site in western Texas and having Morgan Stanley manage the process of finding potential partners. The company reported EBITDA of $19.6 million, a significant improvement from the previous year's loss of $123.2 million. BTCMining revenue reached a record $184.1 million, benefiting from operational efficiency of maintaining the all-inclusive mining cost of each BTC at $31,000. As of the time of writing, the company's stock price is $8.96.

Image source: Google Finance Iris Energy stock price trend chart

Opportunity to invest in the integration of AI and mining

With BTC stabilizing above $70,000 and the expected growth in demand for AI, Core Scientific and Iris Energy are strategically positioning themselves to benefit from the convergence of AI and BTC Mining. For investors seeking diversified investments, these stocks represent powerful choices in a rapidly evolving market.

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【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. The responsibility for investment is at your own risk.