The CoinShares Bitcoin Mining ETF (WGMI) experienced a notable surge on Tuesday, climbing an impressive 12% to reach a record price of $33.13. This rally was propelled by Nebius Group’s landmark $17.4 billion agreement to supply graphics processing units (GPUs) to Microsoft. This deal has not only invigorated the cryptocurrency mining sector but also had a ripple effect on AI-related stocks.
Year-to-date, WGMI has shown remarkable resilience, boasting a 44% increase and surpassing its initial debut level of around $30. The ETF manages total assets amounting to $175.7 million and carries an expense ratio of 0.75%. This growth has been largely driven by the robust performance of its top holdings. IREN (IREN) has skyrocketed by 188% so far this year, while Cipher Mining (CIFR) has seen a substantial increase of 90%.
The agreement between Nebius and Microsoft has significantly bolstered AI-focused mining stocks. The enthusiasm surrounding artificial intelligence has not been limited to the crypto space; it has also positively affected technology giants. For instance, Oracle (ORCL) saw its shares jump 30% in pre-market trading on Wednesday. This surge was fueled by the company’s raised revenue growth forecast for its cloud computing division, which now anticipates a striking 77% growth due to soaring demand for AI capabilities. Furthermore, Oracle’s backlog of contracts surged by an astonishing 359%, reaching $455 billion, driven primarily by substantial AI-focused cloud agreements.
As the momentum from both the cryptocurrency and AI sectors continues, stakeholders are keenly observing the developments that may shape the future landscape of mining and technology alike.
