Bitcoin (BTC) Mining Stocks Could See Massive 200% Growth in 2025, Targets $100B Market Cap

The equity research estimates that the market cap of Bitcoin mining companies will surpass $100 billion in 2025, up from $36 billion in 2024—a nearly 200% increase.

Bitcoin mining stocks are poised for substantial growth in 2025, driven by improving mining economics and the ongoing bull market in the cryptocurrency sector, according to a report by H.C. Wainwright & Co.

The report projects a nearly 200% increase in the market capitalization of Bitcoin mining companies, surging from $36 billion in 2024 to over $100 billion in 2025. This remarkable growth is attributed to several key factors.

Firstly, the recent appreciation in Bitcoin's price, currently hovering around $96,000, has played a significant role. The report highlights the positive impact of the U.S. approving spot Bitcoin exchange-traded funds (ETFs) earlier in 2024.

These ETFs have attracted a substantial $35.3 billion in net inflows and currently hold over 1 million BTC, which equates to approximately 5.5% of the circulating supply.

Bitcoin mining involves the use of specialized computers to validate transactions and secure the network. In return, miners are rewarded with newly minted Bitcoin, although the process incurs substantial energy and operational costs.

According to the report, miners are currently profitable, with production costs significantly lower than Bitcoin's market price.

The report also forecasts Bitcoin to reach $225,000 by the end of 2025, further bolstering the prospects of mining stocks.

This price target, if realized, would place Bitcoin's total market capitalization at around $4.5 trillion, which is approximately 25% of gold's market cap.

Among the large-scale miners, the report identifies Marathon Digital, CleanSpark, and Riot Platforms as the "Big 3" with substantial Bitcoin reserves. These companies are expected to outperform their competitors.

Moreover, the report notes that the valuations of mining stocks, especially those linked to AI miners, are presenting opportunities for investors.

While AI-linked miners are trading at higher multiples, the report suggests that mining stocks could outpace Bitcoin's price gains in 2025, presenting a compelling entry point for investors seeking exposure to the growing digital asset market.

Bitcoin miners are also uniquely positioned to meet the growing demand for AI infrastructure, given their expertise in power assets and high-performance computing.

A McKinsey report, cited by the analysts, projects global data center demand to grow to 152 GW by 2030, compared to 57 GW in 2023. Miners are well-equipped to benefit due to their large-scale, low-cost energy capabilities.

Currently, miners are operating 6.1 GW of data center capacity, with an additional 4.6 GW in development and expected to be operational by 2025.

Seven miners in the sector are planning to deploy a combined 5 GW of power for AI and high-performance computing workloads by 2026, significantly reducing the typical four-year timeline for greenfield projects.