Funds Flee AI Stocks for Crypto

Funds that had invested heavily in artificial intelligence (AI) infrastructure stocks are shifting their focus to cryptocurrency-related shares, leading to a broad increase in related stock prices. On July 27, BitMine Immersion Technologies, which has increased its ethereum holdings by nearly 10,000 tokens, jumped 11 percent to lead the gains.

At current prices, this is worth around $19.4 million. The company's rise was followed by Coinbase Global, BitGo, and Figure Technology, all of which rose between 4-6 percent.

The moves come as AI-related shares have seen a sharp drop due to increased competition from Chinese chip companies and concerns about revolving financing.

Meanwhile, AI-linked bitcoin mining stocks have fallen across the board. Cipher Mining dropped 8 percent, Hut 8 and TeraWulf fell 6 and 4 percent respectively, while pure-play miners like Riot Platforms, Mara Holdings, and CleanSpark weakened further.