Enjoying this content?
Get three under-the-radar investment themes delivered to your inbox every Monday.
Bitcoin Mining Companies Diversify Into AI Infrastructure
Theme 1: Bitcoin Mining Companies Diversify Into AI Infrastructure During Crypto Rally
The convergence of Bitcoin's new all-time high above $126,000 and the strategic pivot toward artificial intelligence represents a fundamental transformation in how mining companies generate revenue. This diversification allows companies to monetize their existing infrastructure—data centers, power agreements, and cooling systems—for high-performance computing applications beyond traditional cryptocurrency mining.
On the supply side, mining companies possess critical infrastructure assets that are directly applicable to AI workloads: established power purchase agreements, cooling systems, and data center facilities. The capital-intensive nature of these assets creates high barriers to entry for new competitors.
On the demand side, the AI compute market is experiencing explosive growth as companies seek GPU capacity for training and inference, while Bitcoin's price surge above $126,000 provides immediate revenue tailwinds for traditional mining operations.
The sector's combined market capitalization reached a record $58.1 billion in September 2025, more than tripling from $19.9 billion in March 2025, reflecting investor confidence in this dual-revenue model.
Stocks that would benefit:
IREN: IREN Limited - Executing a strategic transformation from pure Bitcoin mining to a diversified digital infrastructure provider, with contracts for more than 11,000 of its 23,000 GPUs already completed for non-mining purposes. The company's proprietary power-dense data center designs (200 kW/rack for Horizon 1) and 2.9 gigawatts of secured renewable power capacity provide significant competitive advantages in the power-constrained AI market, while its established Bitcoin mining operations continue generating strong cash flow during the current price rally above $126,000. IREN's rapid AI infrastructure expansion targets 10,900 NVIDIA GPUs by December 2025, projecting $200-250 million in annualized AI Cloud revenue by year-end. Read More →
HIVE: HIVE Digital Technologies - Aggressively scaling both its Bitcoin mining operations to 25 exahash by Fall 2025 (targeting 3% of the global network) and its High-Performance Computing subsidiary, Buzz, which aims for $100 million in annualized revenue by 2026. The company's strategic acquisition of a 7.2-megawatt Toronto data center and partnership with Bell Canada for sovereign AI infrastructure positions it to capitalize on both Bitcoin's historic price levels and growing demand for specialized computing resources. HIVE's commitment to green energy and technological leadership in both ASIC efficiency (targeting 17.5 joules per terahash) and liquid-cooled GPU infrastructure creates a robust competitive moat in the evolving digital infrastructure landscape. Read More →
MARA: Marathon Digital Holdings - Fundamentally transforming from a traditional Bitcoin miner into a vertically integrated digital energy and infrastructure company with near-zero energy costs and diversified revenue streams. The company's proprietary innovations like 2PIC immersion cooling and strategic investments in ASIC manufacturing (Auradine) provide significant operational efficiencies while creating a pathway into high-performance computing and AI. Marathon's substantial Bitcoin treasury, valued at $5.3 billion, serves as both a strategic asset during the current price rally and a source of yield generation, while its expansion into AI inference and sovereign edge infrastructure leverages existing energy and compute expertise to tap into new, high-growth markets beyond cryptocurrency mining. Read More →
Theme 2: Aerospace & Defense Momentum Continues on Record Global Defense Spending
The sector is experiencing unprecedented momentum from multiple tailwinds. Defense spending reached record levels globally, providing stable, multi-year contract visibility for defense contractors. This government spending is relatively recession-resistant and offers predictable funding streams that make these stocks attractive during economic uncertainty.
Commercial aviation is simultaneously experiencing a renaissance as airlines aggressively upgrade their fleets with more fuel-efficient aircraft to meet environmental standards. This creates massive demand for engine components, specialized equipment, and maintenance services. Companies like GE Aerospace are benefiting from dual tailwinds of military contracts and commercial aviation's push toward efficiency.
Specialized equipment providers are seeing explosive growth, with niche players like Astronics gaining nearly 200% year-to-date as manufacturers of specialized lighting and electronics for military and commercial aircraft. Despite these extraordinary gains, many companies maintain reasonable valuations, with some trading at discounts to industry averages.
The sector's defensive characteristics, combined with growth from both defense and commercial aviation, create an attractive risk-reward profile for investors seeking exposure to government spending stability and commercial aerospace recovery.
Stocks that would benefit:
BA: Boeing - Despite recent challenges, Boeing remains a critical supplier to both commercial airlines and defense customers, uniquely positioned to benefit from the dual tailwinds of defense spending and commercial aviation recovery. The company is demonstrating tangible progress in its multi-year recovery plan, marked by significant improvements in commercial aircraft deliveries (150 jets in Q2 2025, the most since 2018) and stabilizing performance across its defense and services segments. Boeing has achieved a 737 production rate of 38 aircraft per month and a 787 rate of 7 per month, with plans to seek FAA approval for further increases. The company's robust total backlog of $619 billion, including over 5,900 commercial airplanes, provides multi-year visibility and insulation from economic cycles. Boeing's strategic portfolio realignment, including the planned acquisition of Spirit AeroSystems, aims to streamline operations and strengthen the supply chain, positioning the company to capitalize on both record defense spending and the commercial aviation fleet modernization trend driving the aerospace sector's momentum. Read More →
GE: GE Aerospace - At the forefront of both defense and commercial aerospace growth, with Q2 2025 revenue surging 23% year-over-year to $10.15 billion, directly benefiting from the dual tailwinds driving the sector. The company commands a dominant position in commercial and defense propulsion, powering 3 out of 4 commercial flights and 2/3 of U.S. military combat and helicopter fleets. GE Aerospace's business model is highly resilient, with approximately 70% of total revenue derived from predictable, high-margin aftermarket services, supported by a massive installed base of 78,000 engines and a record $175 billion backlog. The company's century-plus of innovation, coupled with substantial R&D investment (approximately $3 billion annually), yields differentiated technologies like composite fan blades and advanced durability kits for LEAP and GEnx engines that directly address the environmental efficiency requirements driving commercial fleet upgrades. GE's proprietary lean operating model, FLIGHT DECK, is systematically addressing supply chain constraints and enhancing internal efficiencies, positioning the company to fully capitalize on the record global defense spending that underpins the aerospace sector's momentum. Read More →
RTX: RTX Corporation - A diversified aerospace and defense powerhouse formed from the merger of Raytheon and United Technologies, perfectly positioned to benefit from record global defense spending through its comprehensive portfolio of mission-critical systems. The company's Raytheon segment produces advanced missile systems, radar, electronic warfare, and air defense systems that are in high demand given current global security concerns, while its Pratt & Whitney and Collins Aerospace units provide critical components for both military aircraft and the commercial aviation fleet upgrade cycle. RTX's extensive intellectual property portfolio and long-standing relationships with defense departments worldwide create high barriers to entry and sustainable competitive advantages. The company's balanced exposure to both defense contracts (providing stability and visibility) and commercial aerospace (offering growth as airlines upgrade fleets to meet environmental standards) makes it an ideal way to capture the convergence of record defense spending and commercial aviation's renaissance that forms the core of the aerospace sector's investment thesis. Read More →
Join our Discord community to give feedback, request features, or ask questions about the newsletter or website.
https://discord.gg/yePwyWrwJBThe content is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk. Past performance is not indicative of future results. Investments may lose value and are not guaranteed.
Loading more newsletters...
