Active ETF WGMI Jumps as Miners Shift to AI Data Centers

CoinShares’ Bitcoin Mining ETF WGMI has risen more than 80% year-to-date and has more than quadrupled over the past 12 months. The fund has increased exposure to companies converting bitcoin mining sites into high-performance AI data centers, including holdings in IREN, Core Scientific, TeraWulf and Applied Digital.

WGMI is actively managed and holds 27 companies. Managers have raised stakes in firms adapting power-dense facilities for GPU workloads and reduced exposure to companies focused solely on ASIC-based cryptocurrency mining.

On May 26 TeraWulf announced plans for a new one-gigawatt facility to serve AI customers and its shares rose about 13% that day. IREN, Core Scientific, TeraWulf and Applied Digital have reported contracts or expansions to host GPU tenants and hyperscalers, with some agreements structured as multi-year capacity leases.

Several market factors have coincided with the operational shifts. Bitcoin spot prices have been weak since the most recent halving while the global hash rate has continued to rise. Demand for AI infrastructure has increased, creating a market for leased compute capacity at gigawatt-scale sites.

Companies that repurpose mining sites typically use existing electrical, cooling and grid connections but must upgrade networking, power distribution and rack layouts to support GPUs and other high-performance equipment. Firms that complete those upgrades can offer leased capacity to cloud providers and enterprise customers.

Fund managers can add or remove positions to reflect which companies have secured AI contracts or completed technical upgrades. That active selection has been cited by market participants as a factor in WGMI’s performance relative to funds that track a fixed basket of mining stocks.

In recent filings, the ETF’s largest holdings include IREN, TeraWulf and Core Scientific.