Bitcoin's strong rebound has left AI tokens far behind in the crypto market

The rebound in the crypto market in August reshapes the flow of funds: Miner stocks regained leverage, traditional finance accelerates the deployment of stablecoins

The rebound in the crypto market in August not only pushed up asset prices, but also redirected investors 'attention to companies that are highly correlated with the beta earnings of Bitcoin (BTC) and Ethereum (ETH). At present, the trading logic of Bitcoin miners stocks has once again returned to leveraged bets on BTC; at the same time, corporate coffers continue to increase their holdings of digital assets during the same recovery window. On the other hand, the traditional financial sector is gradually approaching stablecoins as a settlement and payment tool. In the Ethereum market, Bitmine's continued spot buying behavior has brought its positions close to an important supply share milestone.

Core Points

• Miner stocks rebounded strongly: Investors had previously preferred artificial intelligence (AI) and high-performance computing (HPC) infrastructure related targets, which led to a relatively lagging performance of miners stocks; but in August, as risk appetite returned, companies such as Strive and Strategy increased their positions of thousands of BTC in late August, continuing the corporate strategy of "buying on dips".
• G7 stablecoin initiative: An alliance of 21 major financial institutions plans to launch the G7 stablecoin project with the goal of launching in the first half of 2027.
• Bitmine approaches its 5% target: Bitmine has bought ETH for 65 consecutive weeks, and its position accounts for approximately 4.9% of Ethereum's circulating supply, just one step away from its 5% target.

As BTC rebounds, miners 'stocks regain leverage.

Bitcoin's rebound at the end of August reversed a previous trend in which some miners benefited less while others who turned to AI demand performed better. Mining stocks linked to Bitcoin rose sharply, up as much as 67%, according to BlocksBridge Consulting. At that time, the market focus was mainly on miners who were transforming to respond to AI-driven demand.

The BlocksBridge report pointed out that Bitcoin outperformed most AI-linked infrastructure sectors with a gain of about 23% at the end of August. Among them, Canaan, American Bitcoin and Cango increased between 41% and 67% respectively, while CoreWeave, Nebius and IREN increased by approximately 21%, 17% and 15% respectively. Other miner stocks that were more exposed to AI and high-performance computing were flat or down.

The newsletter pointed to several drivers behind the rebound in miners 'stocks: the expansion of the U.S. Treasury's related repurchase program, which supports liquidity; the return of regulatory optimism after a White House cryptocurrency meeting; and what BlocksBridge called a squeeze market, which cleared more than $1.6 billion in positions.

For investors, the signal is clear: When BTC momentum returns, the market seems willing to reward direct exposure and operating leverage again. However, BlocksBridge also pointed to the risk of the division's lingering-the high cost of expanding AI data center capabilities. This tension explains why in a purely BTC-driven rebound, AI-oriented strategies may not always capture the same upside.

Strike and Strategy continue to expand BTC treasury

In terms of corporate coffers, this is another focus during the recovery. In the last week of August, both Strive and Strategy made additional Bitcoin purchases, further increasing their positions and confirming the view that balance sheet confidence still exists.

Strive reportedly purchased 1,800 BTC units for approximately US$143 million, increasing its position to 23,156 units. After the company purchased 1,110 BTC units the previous week for an average price of $73,409, the average price for this purchase was $79,431 per unit (including fees and expenses).

Meanwhile, Strategy purchased 4,603 BTC units at an average price of US$80,318 each. After four sales since May, its position has exceeded 845,000 BTC. The two companies 'actions suggest that the rally at the end of August translated into specific treasury actions rather than purely speculative positioning.

Related comments from BlocksBridge also linked the timing to the broader recovery of digital assets that began on August 19 after the U.S. Treasury Department announced a doubling in certain long-term bond buybacks. While this does not "explain" all corporate decisions, it provides context for the return of market risk appetite, including cryptocurrencies.

stablecoins move towards G7 driving force in 2027

In addition to BTC and ETH, the development of stablecoins is gaining new impetus from traditional financial institutions. An alliance of 21 major companies including Bank of America, Goldman Sachs and Citigroup plans to form a new company to develop and issue stablecoins, another step in a long-term effort to build a "digital dollar" for real-world payment channels.

The group plans to launch dollar-denominated stablecoins in the first half of 2027, and then plans to expand to other G7 currencies-starting with the euro quote. Its stated goal is to support wholesale, institutional and retail use cases, including cross-border payments and digital asset settlements.

This stablecoin initiative builds on an announcement earlier in October last year, when 10 banks explored creating a 1:1 reserve-backed form of digital currency on the public blockchain. The alliance now covers North America, Europe, East Asia, the Middle East and Africa and aims to comply with the U.S. GENIUS Act and the European Union's MiCA framework.

This is important for market participants because the issuance and distribution of stablecoins directly affects on-chain settlement liquidity, gold withdrawal channels, and the speed at which traditional counterparties connect tokenized assets. The 2027 goal also provides a specific timetable for developers and compliance teams focused on regulatory clarity in major jurisdictions.

Bitmine accounts for nearly 5% of Ethereum's circulating supply

In the Ethereum field, the accumulation rate of Bitmine is still extremely persistent. The company extended its ETH buying streak to 65 consecutive weeks, adding 53,501 ETH in the latest reporting period, when broader cryptocurrency prices were recovering.

As a result, Bitmine's position rose to more than 5.9 million ETH. As of Sunday, based on an ETH price of $2,511, its value was approximately $14.8 billion, which is consistent with figures reported earlier. This puts Bitmine's stake at approximately 4.9% of Ethereum's 120.7 million circulating supply-very close to its stated 5% target.

Bitmine Chairman Tom Lee said that since June 30, Ethereum, Bitcoin and Solana are the top three major assets performing best, with ETH leading the gains. He also believes that the relative performance of other macro assets should encourage institutions to increase their cryptocurrency holdings.

Still, accumulation has not eliminated the story of recovery from book losses. According to DropsTab data cited in the report, Bitmine faced unrealized losses of approximately $5.1 billion on its Ethereum positions-reflecting continued buying behavior during the decline that began in late 2022. As the market rebounds, the company is willing to continue to absorb the gap, which is the core reason why its supply share has climbed despite the volatility.

Follow-up Focus

As miners react strongly to BTC momentum, companies continue to increase their holdings in the recovery phase, and major institutions push stablecoin plans into 2027, the next signal will be whether these themes can be maintained as volatility returns-especially as Bitcoin changes direction and whether AI-linked infrastructure continues to lag behind (or catch up).