Valkyrie Bitcoin Miners ETF rises 97% as miners pivot to AI hosting

The Valkyrie Bitcoin Miners ETF (WGMI) has seen a 97% increase over the past year, diverging significantly from Bitcoin, which lost approximately 46% of its value during the same period. This decoupling is driven by a strategic shift among mining companies toward AI hosting and data center services.

Major holdings within the fund, such as Core Scientific and IREN, have transitioned toward leasing computing capacity to hyperscale companies for AI workloads. Core Scientific has secured a fifteen-year lease agreement for AMD chips, with contracted revenue exceeding $14 billion. Similarly, Riot Platforms has entered a twenty-year lease agreement with an AI laboratory, bringing its contracted revenue to $9.8 billion. IREN has reported that its entire operational capacity is currently under contract.

Analysts note that the fund's performance is increasingly tied to the capital expenditures of major AI firms rather than Bitcoin's price fluctuations. While the fund contains mining companies, it is not considered a direct substitute for Bitcoin exposure, such as a spot ETF.