Here’s how Nvidia’s $57B Q3 sent Bitcoin mining stocks flying
Key takeaways
Why did Bitcoin mining shares react to Nvidia’s earnings?
Miners like IREN and Cipher are shifting from crypto mining to AI and knowledge heart companies, which depend upon high-performance GPUs.
How a lot have IREN and Cipher shares grown this 12 months?
IREN is up 366.7% YTD, whereas Cipher is up 215.09% YTD.
As broader markets continued their downward slide on nineteenth November, Nvidia delivered a standout earnings report that defied sentiment.
Nvidia Q3 outcomes
The chipmaker recorded $57 billion in third-quarter income and projected a stronger fourth quarter within the vary of $63.7 to $66.3 billion, comfortably beating Wall Avenue’s $61.98 billion estimate.
In the course of the earnings name, CFO Colette Kress additionally famous,
” We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling quick — with extra new basis mannequin makers, extra AI startups, throughout extra industries, and in additional international locations.”
He additional added,
“AI goes all over the place, doing every part, unexpectedly.”
The ripple results of Nvidia’s earnings have been felt past conventional tech, as publicly listed Bitcoin miners like IREN and Cipher Mining noticed notable inventory positive aspects following the announcement.
These firms have more and more shifted away from pure Bitcoin mining towards AI-focused knowledge heart operations to capitalize on hovering demand for high-performance GPU compute.
IREN and Cipher inventory efficiency
IREN, as soon as primarily a Bitcoin [BTC] mining operation, has now redirected a part of its infrastructure towards AI workloads.
The agency just lately signed a $9.7 billion multi-year settlement with Microsoft, making the tech big its largest buyer.
Underneath the deal, IREN will provide Nvidia-powered GPU clusters from its North American services, sourcing {hardware} by means of Dell Applied sciences to help large-scale deployments.
This coincided with IREN inventory surging greater than 10% after hours to $50.45, earlier than later cooling to $45.83, a 6.18% decline.
But, regardless of the pullback, the inventory has skyrocketed greater than tenfold this 12 months, logging 366.7% year-to-date development.
Moreover, Cipher Mining adopted an analogous trajectory, rallying practically 13% after hours to $16.51 on the heels of Nvidia’s outcomes.
The corporate just lately secured a 10-year AI internet hosting settlement with Fluidstack, a Google-backed agency, and is now upgrading its services to help Nvidia’s H100 and Blackwell GPUs.
Whereas the inventory later retraced to $14.62, the inventory has additionally posted an enormous run this 12 months, with 215.09% year-to-date positive aspects.
Nonetheless, the transfer towards AI companies coincides with weakening profitability in conventional Bitcoin mining.
Bitcoin miner income knowledge
At press time, BTC’smonthly miner income dropped sharply, from $1.62 billion in October to $851.84 million in November, in keeping with The Block.
Supply: The Block
The decline suggests miners are incomes much less, not on account of lowered curiosity in Bitcoin, however due to decrease community charges, lowered outbound funds, or a short lived shift in exercise.
Nonetheless, nations like Kazakhstan have up to date their digital legal guidelines, signaling a decisive shift towards broader crypto adoption and regulatory maturity.
By eradicating regional restrictions, easing guidelines for miners, tightening knowledge protections, and exploring a state-backed crypto reserve, the nation is positioning itself as a extra open and innovation-friendly hub for digital belongings.
