AI Miner Stocks Plummet on Rising Treasury Yields

The shares of AI-focused companies are falling as rising Treasury yields increase borrowing costs and discount rates for future cash flows. Cipher Mining and TeraWulf, both heavily invested in AI infrastructure, have taken a hit with Cipher down 9% to $16.77 and TeraWulf down 7% to $16.45.

The 10-year Treasury yield has risen to 4.7%, near the upper end of its 52-week range of 3.9% to 4.7%. This increase is putting pressure on long-duration cash flow valuations for companies financing multi-year data center construction against contracted revenue arriving later.

HIVE Digital Technologies and MARA Holdings are also down, with HIVE falling 7% to $2.87 after its Monday gains and MARA Holdings stock dropping 5% to $9.24.