$RIOT

Bitcoin miners have signed over $100B in AI contracts but only generate $1.1B in annualized revenue. Publicly traded miners have 4 GW of AI capacity under contract, but only 550 MW are billing. Investors value miners with AI contracts at 12.9x EV/sales vs. 3.7x for those without. CoinShares notes grid access scarcity and long permitting processes are driving valuations, with some miners abandoning Bitcoin mining for AI.

Bitcoin miners' performance diverged from bitcoin's price over the past year, with four of the five largest miners gaining while bitcoin fell 31%. According to CoinShares, miners are increasingly leasing power contracts to AI data centers, shifting their business model. Efficient mining rigs profited, while older ones lost money. Miners like Hut 8 (HUT), Riot (RIOT), and CleanSpark (CLSK) saw significant gains. CoinShares' ETF (WGMI) expanded to include AI infrastructure names like Nebius (NBIS)

Circle and Coinbase shares dropped about 10% after the US Senate failed to advance the CLARITY Act, which would set rules for the digital asset market. Bitcoin miners and treasury companies also declined. Bitcoin briefly fell below $75,000 but recovered to around $76,000. Coinbase CEO Brian Armstrong had advocated for the bill.

CoinShares reports that publicly traded Bitcoin miners shifting to AI infrastructure are unlikely to reverse course, even with BTC price recovery, due to long-term contracts. AI generates ~$1.5M profit per MW vs. ~$500K for BTC mining. 35 EH/s of computing power is set to exit listed miners, equivalent to 4.7% of Bitcoin's network hash rate. Companies like Keel, IREN, and Cipher Digital are committed to AI, while Riot, MARA, HIVE, and Bitdeer remain flexible. Q2 mining costs averaged $75,500 per

Skyworks Solutions (SWKS) and Qorvo (QRVO) rose 10% and 7% respectively, recovering from prior sell-offs. Axon (AXON) fell 9% after a $1B convertible note sale. Revvity (RVTY) jumped 7% to a 52-week high, citing strong backlog. Dave & Buster's (PLAY) dropped 17% after missing Q2 revenue and EBITDA estimates. Enova (ENVA) tumbled 25% after withdrawing a regulatory application. Sysco (SYY) slid 3% on a 12.3M share offering. Alignment Healthcare (ALHC) fell 18% due to business headwinds. Waystar (W

Third Point disclosed a stake in Hut 8 Corp. (HUT) and debt exposure to Riot Platforms (RIOT) in its latest filing. HUT shares increased from 869,563 to 1.315 million, while RIOT notes amounted to $3.5 million. HUT reported 949 MW of contracted capacity and $26.6B in expected contract value. RIOT's Q2 revenue was $23.2M, with future leases adding to its pipeline. Both companies face execution risks in converting commitments into returns.

Riot Platforms (RIOT) stock surged 12% to a 4-year high of $23.64 after announcing a deal with Terrestrial Energy (IMSR) to co-locate molten salt nuclear reactors with data centers. The project aims for 4 GW of nuclear power, targeting AI, HPC, and Bitcoin mining. RIOT's stock and IMSR's stock both trended high on Stocktwits. RIOT holds 15,679 BTC, valued at ~$1.2B. H.C. Wainwright raised RIOT's price target to $25.

Publicly-listed Bitcoin mining companies are shifting focus to AI processing due to high demand, reducing Bitcoin mining power by 18% since October 2025. Companies like MARA and Riot Platforms are involved in AI deals, while some believe Bitcoin mining and AI can coexist. According to Bloomberg, AI now generates most revenue for these firms.

Major Bitcoin miners have halted sales and reduced hashrate by 15% over six months, redirecting resources to AI and HPC. Cango and IREN led the decline, disconnecting 29.5 EH/s and 21.9 EH/s respectively. Industry spending on AI infrastructure exceeded $30 billion, outpacing revenue. Miners' Bitcoin sales surged in August but have since dropped, signaling constrained supply.

Bernstein analyzed Bitcoin miners' AI deals, finding Core Scientific's 75% ROA and 79% yield on cost are exceptional due to low upfront costs. Riot showed 23% ROA, while TeraWulf and Cipher had 5-4% ROA. Bernstein rated the sector 'Outperform' with targets: WULF $36, CIFR $32, CORZ $32, RIOT $30, CLSK $24, MARA $17.