Crypto Stocks Surge as Investors Rotate Out of AI Infrastructure
Crypto-related stocks have been rising as investors shift away from AI infrastructure companies and into digital asset firms. This rotation has lifted cryptocurrency-focused companies, despite major chip stocks declining and the broader market weakening.
The gains were led by Bitmine Immersion, which surged 11% after announcing it had increased its ether holdings by nearly 10,000 ETH, valued at approximately $19.4 million based on current market prices. This purchase reinforces the company's strategy of building an ether treasury as institutional interest in the cryptocurrency continues to expand.
Other crypto firms also posted solid gains, including Coinbase Global, digital asset custodian BitGo and financial technology company Figure Technology, which all advanced between 4% and 6%. Circle Internet Group, the issuer of the USDC stablecoin, added 2% after announcing it had acquired IBM's global portfolio of more than 1,000 blockchain-related patents.
In contrast, bitcoin miners that have increasingly positioned themselves as providers of computing power for artificial intelligence applications have come under selling pressure. Cipher Mining led losses among AI-exposed miners, falling 8%, while Core Scientific dropped 9%. Hut 8 declined 6%, and TeraWulf lost 4%.
Analysts say many of these stocks now trade together through sector exchange-traded funds, thematic investment baskets and algorithmic trading strategies. As a result, concerns affecting AI infrastructure often spill over into bitcoin miners regardless of their direct exposure to artificial intelligence.