Bitcoin mining stocks down after Microsoft scraps data center plans
The post Bitcoin mining stocks down after Microsoft scraps data center plans appeared on BitcoinEthereumNews.com.
Update (March 26 at 8:48 PM UTC): This article has been updated to include commentary from Benchmark stock analyst Mark Palmer. Bitcoin (BTC) mining stocks are down after tech giant Microsoft reportedly scrapped plans to invest in new artificial intelligence data centers in the US and Europe, citing a potential oversupply, according to a report by Bloomberg and data from Google Finance. Shares of crypto miners Bitfarms, CleanSpark, Core Scientific, Hut 8, Marathon Digital and Riot dropped between 4% and 12% in tandem with the news, the data showed. The stock price retrenchments highlight cryptocurrency miners’ increased dependence on business from artificial intelligence models after the Bitcoin network’s April 2024 “halving” cut into mining revenues. According to Benchmark stock analyst Mark Palmer, investors already anticipated Microsoft’s data center cuts. In his view, the share price pullback “appears to be driven more by stagnation in the price of bitcoin than any other factor, potentially combined with investor fatigue settling over the space as mining difficulty remains near record levels,” Palmer told Cointelegraph. CORZ intraday performance on the Nasdaq. Source: Google Finance Miners are “diversifying into AI data-center hosting as a way to expand revenue and repurpose existing infrastructure for high-performance computing,” Coin Metrics said in a March report. For example, in June 2024, Core Scientific pledged 200 megawatts of hardware capacity to support CoreWeave’s artificial intelligence workloads. In August 2024, asset manager VanEck said Bitcoin mining stocks could collectively see a roughly $37 billion bump to market capitalizations if they invest heavily in supporting AI. Nevertheless, miners have struggled this year as declining crypto prices worsen pressures on businesses already impacted by April’s halving, JPMorgan said in March. Waning demand for AI data centers could add further strain. Bitcoin miners could see gains in valuation from pivoting to AI. Source: VanEck…
Filed under: News - @ March 27, 2025 2:21 pm