"The Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) has delivered 86% returns over the past year, but recent volatility tells a more complicated story. Bitcoin's sharp decline from $94,383 on January 2 has pressured mining economics across the board, with WGMI down 12.4% over the just past month. The fund's concentrated exposure to Bitcoin miners pivoting toward AI infrastructure creates both opportunity and risk as the sector navigates this transition."
"WGMI's top holding, Iren Ltd (NASDAQ:IREN), represents 24% of the fund and exemplifies the sector's strategic shift toward AI infrastructure. The company secured a $9.7 billion Microsoft ( NASDAQ:MSFT | MSFT Price Prediction) contract and targets $3.4 billion in AI Cloud annual recurring revenue by end of 2026. However, management emphasizes 24 to 30 month payback periods for GPU investments, signaling a measured approach to capital deployment rather than aggressive expansion."
Valkyrie Bitcoin Miners ETF (WGMI) returned 86% over the past year but declined 12.4% in the past month as Bitcoin fell from $94,383 on January 2. Bitcoin now trades about 28% below its year-start level, creating margin pressure for miners and leaving markets pricing only a 41% chance of $100,000 by year-end. Some miners show operational resilience: Riot Platforms (4.8% of the fund) beat revenue estimates with $180.2 million, though its stock is down about 10% month-over-month. WGMI’s largest holding, Iren (24%), won a $9.7 billion Microsoft contract and targets $3.4 billion AI Cloud ARR by 2026, while management expects 24–30 month GPU payback periods. Cipher (18.3%) secured a $5.5 billion AWS lease but faces execution and revenue challenges. The fund’s concentrated AI pivot creates both opportunity and execution risk amid volatile Bitcoin prices.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]