Institutional uptake and operational efficiency drive miners to outperform despite the crypto downturn

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Miners Stand Strong Amid Crypto Downturn: , Cipher, and Achieve Notable Double-Digit Growth

Over the last few months, publicly listed Bitcoin mining companies have surpassed the broader cryptocurrency market, with several achieving impressive double-digit growth despite turbulent market conditions. By late September 2025, the combined value of major mining stocks neared $50 billion, fueled by a resurgence of institutional interest and aggressive expansions from industry leaders. Applied Digital (NASDAQ: APLD),

(NASDAQ: CIFR), and IREN (NASDAQ: IREN) distinguished themselves with strong performances, as and IREN achieved record highs, while accounted for 24% of all Bitcoin mined in July.

This sector’s durability was evident in both Q2 2025 earnings reports and operational updates. IREN, boasting a market cap of $9.4 billion, expanded operations through strategic alliances and secured long-term energy deals. Cipher Mining’s Black Pearl Phase I facility, delivering 150 MW of mining power, played a key role in boosting output, and company leaders anticipate further growth as Phase II progresses. Applied Digital capitalized on its HPC colocation business to enhance profits, mirroring a wider industry move toward higher-value data center services.

Wider economic trends also benefitted mining stocks. The Federal Reserve’s quarter-point rate reduction in September 2025 improved financial conditions, and spot Bitcoin ETFs attracted $1.186 billion in net new inflows during the week of September 13–18. These investments, alongside institutional adoption such as Hyperscale Data’s $100 million commitment and Strategy’s (formerly MicroStrategy) purchase of 525 BTC, provided additional momentum for mining equities. Bitcoin’s price stabilization between $114,400 and $117,910 during this period also reinforced investor interest in miner stocks as a proxy for network security.

Industry leaders further set themselves apart through operational optimization and cost-cutting. DL Holdings’ procurement of 2,200 Bitmain S21XP HYD units and Hut 8’s installation of advanced ASICs demonstrated a sector-wide emphasis on lowering energy expenses. As of mid-September, the mining cost-to-price ratio for Bitcoin was 0.98, showing slim margins but ongoing profits for miners with access to inexpensive electricity. Companies like CleanSpark and Bitfarms emphasized AI/HPC hosting agreements, while TeraWulf secured $3.7 billion in contracts for its Lake Mariner site.

Momentum in the sector was also fueled by corporate actions and capital-raising efforts. MARA Holdings’ $950 million convertible note issuance and CleanSpark’s CEO transition to co-founder Matt Schultz indicated strong confidence in future expansion. Meanwhile, regulatory improvements—including the SEC’s adoption of generic ETP standards and the UK FCA’s proposed crypto exemptions—helped streamline compliance and attract more institutional players.

Even with uncertain macroeconomic conditions, publicly traded miners displayed robust fundamentals. Bitcoin’s 14-day RSI neared overbought levels (69.99 on September 19), signaling strong upward momentum, while mining stocks continued to outperform Bitcoin, opening up new funding options for fleet enhancements. With network difficulty climbing to between 142 and 143T and the hashrate stabilizing around 1.05 ZH/s, the industry remains well-positioned to benefit from the ongoing demand for Bitcoin’s network security.