Key Takeaways
Why Bitcoin Miners Outperform BTC?
AI integration has boosted Cipher and Iren by 300 to 500% YTD, transforming mining into a data infrastructure business.
What does this mean for Bitcoin?
Stable miner revenue reduces selling pressure, allowing BTC to recover towards $109,000 – $113,000 if momentum continues.
Bitcoin [BTC] faced a volatile October, which deviated from the usual “Uptober” momentum. The coin fell below $107,000 mid-month, down 0.28% per day and 4.43% per week.
However, the spotlight has shifted. Bitcoin miners are stealing the show, outperforming BTC with record profits thanks to the integration of artificial intelligence (AI) and new revenue models.
Bitcoin mining stocks are taking the lead
2025 was a historic year for BTC, with the coin largely trading above $100,000. Yet the real winners were the miners.
According to BloombergBitcoin miners outperformed traditional BTC miners by moving to hybrid models that combine artificial intelligence and high-performance computing.
Source: Bloomberg
As such, the CoinShares Valkyrie Bitcoin Miners ETF is up more than 150% this year, outperforming Bitcoin itself.
Interestingly, investors’ perception of mining companies has changed as they see them as tech infrastructure companies.
The key behind the historic miners’ rally
Amid this mining boom, Cipher Mining Inc. and IREN LTD lead the way. In 2025, Cipher Mining Inc. rose. even by 304%.
Source: MarketWatch
Iren LTD had even more gains, up about 519% this year alone. The two companies have rebounded significantly as they move from pure BTC mining to AI infrastructure in search of consistent revenue.
So instead of relying solely on BTC, these companies believe that AI training could provide a safer and more consistent source of income to increase their mining revenues.
Source: MarketWatch
Both companies have raised significant capital to finance this transition.
Cipher closed a $3 billion deal with Fluidstack, while Iren recently completed a $1 billion convertible note offering.
These moves blur the line between AI computing and crypto mining, allowing miners to diversify their income as the Bitcoin Halving reduced block rewards to 3.1 BTC.
This hybrid approach has changed the way investors perceive risk. By using AI-driven revenue streams, miners maintain more stable cash flows even as Bitcoin’s price falters.
Miner profitability remains strong
Significantly, in a changing ecosystem, miner profitability, while muted, has remained stable since June 22, when the Puell Multiple fell below 1.
Since then, this benchmark has fluctuated between 1.3 and 1.2. At the time of writing, Puell Multiple was around 1,204, indicating healthy profitability for miners.
Source: Checkonchain
That stability has prompted miners to hold their BTC rather than sell it, reducing foreign exchange inflows and easing potential selling pressure.
What this means for Bitcoin
Miners have outperformed Bitcoin this year as they focus on AI infrastructure, building more stable revenue streams beyond block rewards.
While BTC lags, this shift could serve as a strategic lifeline. Traditional investors often treat mining stocks as leveraged Bitcoin bets, meaning their rallies could signal early optimism for BTC’s next move.
When miners’ income stabilizes through alternative sources such as AI computing, the pressure to liquidate BTC decreases. This reduces the sales risk and strengthens the dynamics of the market supply.
If this pattern continues, Bitcoin could regain strength and retest $109,590, potentially targeting the Short-Term Holder (STH) realized price near $113,200.
However, if miners remain cautious and selling pressure continues, BTC could consolidate between $105,000 and $112,000 for an extended period.