U.S. stocks weakened overall on Monday, but crypto-related stocks bucked the trend and rose. Market analysts believe that some funds shifted to crypto themes after the chip and AI infrastructure sectors came under pressure. However, Bitcoin mining companies, which are more closely linked to AI data centers and computing power infrastructure, did not benefit, and most stocks in the sector declined.
Cryptocurrency stocks bucked the trend and rose.
Companies that saw the largest gains that day included Bitmine Immersion, Sharplink Gaming, Strategy, Coinbase, as well as BitGo and Figure Technology. Companies related to the Ethereum reserve attracted particular attention.
Bitmine Immersion shares rose 11%. The company's latest update shows its Ethereum holdings increased by nearly 10,000 coins, worth approximately $19.4 million at current prices. Sharplink Gaming also rose 6%.
Strategy rose 7%. The company did not continue buying Bitcoin, instead increasing its cash buffer for the fifth consecutive week. The market still views it as a significant representative of crypto asset exposure.
- Bitmine Immersion rose 11%.
- Sharplink Gaming rose 6%.
- Strategy rose 7%.
Pressure on AI infrastructure drives fund rotation
This sector divergence occurred amid a sharp drop in oil prices and a decline in US Treasury yields. Meanwhile, memory chip stocks and other stocks directly benefiting from AI investments continued to be under pressure, and market risk appetite declined significantly.
ClearStreet analyst Owen Lau said that as market concerns about “revolving financing” spread, coupled with increased competition from Chinese semiconductor companies, chip and AI infrastructure-related stocks are facing repricing, and some funds are therefore flowing into alternative themes such as crypto.
Michael Donovan, senior research analyst at Compass Point, also pointed out that the market is concerned that companies in the chain, from mining companies to AI infrastructure developers, may need to continue to raise funds at higher costs in the future to support their capital expenditures and project progress.
Mining stocks generally declined
Bitcoin mining companies more closely tied to AI businesses generally weakened on Monday. Cipher Mining saw the largest drop, falling 8%. Hut 8 and Terawaulf fell 6% and 4%, respectively.
The decline also spread to pure Bitcoin mining companies. Riot Platforms fell 5%, Mara Holdings fell 3%, and CleanSpark fell 4%. Core Scientific, which has significantly shifted its focus to AI data center business, fell by 9%.
Analysts point out that listed mining companies are increasingly being viewed by investors as holders of digital infrastructure assets, rather than just Bitcoin producers. Their power capacity, data center assets, and energy contracts have become significant components of their valuations. Therefore, even companies still primarily focused on mining are often grouped with AI-related mining companies and affected by ETF and quantitative position adjustments.
- Cipher Mining fell 8%.
- Core Scientific fell 9%.
- Riot Platforms fell 5%.
Bitcoin and Ethereum have limited volatility
In terms of cryptocurrency prices, Bitcoin saw little change throughout the day, remaining below $65,000. Ethereum rose over 1%, reaching approximately $1,900.
The market is currently more focused on whether the financing pressure on AI infrastructure will continue to drag down the valuations of mining companies, and the sustainability of the shift of funds from overvalued AI transactions to crypto themes. For crypto concept stocks, short-term support comes from fund rotation; but for mining companies, financing costs and dilution pressures remain the main factors.
