Bitcoin Approaches All-Time Highs: A Look Beyond the Cryptocurrency Itself

Bitcoin (BTC) is currently making headlines as it nears its all-time high, reigniting excitement among investors and crypto enthusiasts. This resurgence in interest raises an important question: Is investing in Bitcoin itself the best way to capitalize on this crypto boom? While Bitcoin remains the reigning champion of cryptocurrencies, many investors are turning their eyes to crypto stocks, which have been outpacing traditional markets, including the S&P 500.

Crypto Stocks: A Profitable Alternative

The recent rise in crypto prices has not only heightened interest in Bitcoin but also in companies that operate within the cryptocurrency ecosystem. These crypto stocks offer investors exposure to the benefits of rising crypto prices while providing business models that contribute to meaningful revenue growth. For instance, two standout players in this arena have already eclipsed Bitcoin’s year-to-date performance.

Transitioning from Mining to AI: The Case of IREN

One fascinating story in the realm of crypto stocks is that of crypto miners evolving their business models. IREN (IREN) is leading this transition by repurposing itself as an artificial intelligence data center. This strategic pivot positions the company to secure lucrative contracts with tech giants like Alphabet (GOOG) and Meta Platforms (META).

The Rise of AI Infrastructure

As demands for AI solutions continue to surge, IREN is uniquely positioned to meet these needs. With a data center capacity of 810 megawatts and nearly 3 gigawatts of contracted, grid-connected power, the potential for revenue growth is enormous. The company has indicated that upcoming deals could translate to billions in revenue. By the end of 2027, these power resources will be available, further solidifying IREN’s market position.

Adding to this optimism, IREN has also disclosed plans for a multi-gigawatt development pipeline. While the company currently generates most of its revenue from Bitcoin mining, its cloud segment is expected to show substantial growth.

Projected Growth and Revenue

In August, IREN projected its annual recurring cloud revenue to reach between $200 and $250 million by year-end. A month later, it announced expectations of exceeding $500 million by Q1 2026. Such significant quarter-over-quarter growth indicates a high demand for IREN’s AI data centers, potentially surpassing the earnings from its crypto mining operations. For context, IREN mined 668 Bitcoin in August, resulting in hardware profits of $50.8 million, showcasing a 66% hardware profit margin.

Coinbase: Pioneering Crypto Trading

Shifting gears from mining to trading, Coinbase (COIN) represents one of the earliest and largest U.S.-based crypto exchanges. With $1.8 billion in crypto assets under its management as of mid-2025, Coinbase has grown beyond just a trading platform.

A Comprehensive Offering

Coinbase allows customers not only to trade cryptocurrencies but also to stake them, make purchases, and store their assets in secure digital wallets. The platform makes global transfers fast and free, enhancing user experience. Although year-over-year transaction revenue saw a slight dip, the stablecoin segment has emerged as a bright spot, experiencing a 38.3% rise due to new regulatory frameworks encouraging widespread adoption.

Institutional Appeal and Future Growth

Coinbase has solidified its reputation as a trusted platform for institutional investors, serving as a custodian for over 80% of U.S. Bitcoin and Ethereum ETFs. As interest in cryptocurrencies escalates, particularly with Bitcoin nearing all-time highs, Coinbase’s transaction revenue stands poised to benefit significantly.

Additionally, owning Coinbase stock grants exposure to Circle (CRCL), a hot crypto stock benefiting from the stablecoin market. With 8.5 million shares in its portfolio, Coinbase has seen profits soar, up by more than 70% year-to-date.

Not Just Crypto Plays

Both IREN and Coinbase exemplify the innovative evolution within the cryptocurrency space. IREN is tapping into the burgeoning AI market, while Coinbase is redefining digital finance. Their performances have outstripped Bitcoin’s year-to-date gains, suggesting that these stocks may offer robust upside potential if Bitcoin continues on its upward trajectory.

As the cryptocurrency landscape evolves, it’s becoming increasingly clear that while Bitcoin remains a touchstone for value, the businesses supporting this ecosystem are carving out their avenues for profit, reflecting the diversification of investment opportunities within this exciting sector.