The Mining Doldrums: Why Bitcoin Miners Are Lagging Behind BTC—and What Investors Should Do Next

The Bitcoin mining sector is in a rut—and it’s getting worse. According to JPMorgan’s April 2025 report, firms like IREN, RIOT, WULF, and HUT have now underperformed Bitcoin itself for three straight months. This isn’t just a hiccup; it’s a trend that demands attention. Let’s break down what’s going wrong, who’s winning, and where to look for opportunities in this volatile landscape.

The Numbers Are Brutal—and They’re Getting Worse

The core issue is simple: more miners, less reward. The Bitcoin network’s hashrate—the measure of computational power chasing those elusive blocks—jumped 6% month-on-month in April, hitting 872 EH/s. That’s the second-largest single-month surge on record.

Here’s why that’s a disaster: when hashrate spikes, mining difficulty rises, and block rewards shrink. In April, daily revenue for miners fell 6% compared to March. Even though the total market cap of 13 U.S.-listed mining stocks rose 12%, the pain at the company level is undeniable. These firms are caught in a brutal game of musical chairs—more chairs (miners) but fewer rewards (BTC) to go around.

The HPC Pivot Isn’t Saving Them (Yet)

Miners aren’t sitting idle. Companies like IREN and RIOT have bet big on high-performance computing (HPC), selling cloud services to AI developers. The logic? Diversify revenue streams and reduce reliance on Bitcoin’s price swings. But JPMorgan’s data shows this pivot hasn’t paid off—yet.

Why? Two reasons:
1. AI demand is still nascent—HPC revenue streams are growing but aren’t yet large enough to offset plummeting mining profits.
2. Regulatory uncertainty—Rollbacks under Trump’s administration may ease some crypto restrictions, but it’s not clear how this will impact mining margins.

The market is skeptical.

The One Miner Breaking the Cycle: GREE’s 46% Surge

Not everyone is drowning. Greenidge (GREE) surged 46% in April, outperforming every other mining stock and Bitcoin itself. What’s their secret? Focus and flexibility.

GREE hasn’t abandoned Bitcoin—they’ve doubled down on operational efficiency. They’ve also leaned into HPC selectively, avoiding the “all-in” bet that’s hurting peers. Their strategy? Let the AI boom come to them, not chase it blindly.

This isn’t just luck. GREE’s stock rise suggests investors reward companies that balance Bitcoin mining with smart diversification—not reckless expansion.

The Bottom Line: This Is a Buying Opportunity—for the Bold

Here’s the takeaway: Bitcoin miners are in a rough patch, but this isn’t the end of the story. The HPC pivot is a long game, and the companies that survive this hashrate war will be positioned for dominance when the cycle turns.

Investment Playbook:
1. Buy the dip in HPC miners—but only if they have cash reserves and diversified revenue. I’m eyeing IREN and WULF, but only after checking their balance sheets.
2. Go all-in on GREE—their 46% jump isn’t a fluke. This is a company that’s nailing execution in a messy market.
3. Wait on Bitcoin itself—while BTC is outperforming miners, its price is tied to macro factors like interest rates. Let others speculate; focus on the miners who’ll profit when the hashrate stabilizes.

The data is clear: miners are hurting now, but their shift to HPC and Bitcoin’s inherent scarcity mean this sector isn’t going away. The next six months will separate the winners from the washed-up. Stay aggressive, but stay smart.

Final Thought: Mining stocks are like a rollercoaster—terrifying in the dumps but thrilling when they soar. Right now, we’re at the bottom. Buckle up.