Cryptocurrency stocks fell sharply on Wednesday, with Bitcoin miners, which have recently seen rapid growth due to their artificial intelligence (AI) infrastructure, taking the biggest hit.
Bitfarm (BITF), Crypto Mining (CIFR), Hut8 (HUT), hive$0.1359 Shares fell 10-15% in early trading. Galaxy (GLXY), a digital asset investment firm with a growing data center business, fell more than 15% after Tuesday’s earnings report, more than wiping out all of its gains.
The CoinShares Bitcoin Mining ETF (WGMI), a proxy for the sector, fell 7%.
Cryptocurrency stocks other than mining were no exception. Bakkt Holdings (BKKT), which soared more than 300% earlier this month, has fallen another 7.5% and is now down nearly 40% in a week. Strategy (MSTR), the world’s largest corporate Bitcoin holder, fell 4% to below $290.
If you check out other names like Coinbase (COIN), Robinhood (HOOD), Bullish (BLSH), and Gemini, you’ll find even steeper losses in the 5%-6% range.
Bitcoin remains in the $108,000 region, but remains significantly lower after hitting $114,000 on Tuesday.
BTC miner AI trading cools down
The sharp decline in BTC miners suggests that a months-long rally in BTC miners, fueled by investor optimism about winning lucrative data center trades, has stalled as the market turns risk-off.
At the peak of the AI and high-performance computing bull market, the combined market capitalization of related companies exceeded $95 billion. It has since fallen to about $82 billion, according to Farside data.
BitFarms (BITF) has soared more than 400% since September, but has since fallen about 40% and now trades at just over $4 per share. IREN has risen about 400% since the beginning of the year and about 200% since September, but has fallen about 30% from its all-time high of $73 and is currently trading around $52.
