Treasury Yields Send AI and Bitcoin Mining Stocks Plummeting
Rising Treasury yields are pushing down stock prices in the AI infrastructure and Bitcoin mining sectors. Shares of IREN Limited (NASDAQ:IREN) declined by 4% to $35.58, while TeraWulf (NASDAQ:WULF) fell 4% to $14.46. Cipher Mining (NASDAQ:CIFR) dropped 6%, the steepest decline among these companies.
The increase in long-term Treasury yields is affecting these stocks because they have large capital expenditures pipelines, which require significant financing costs. For example, IREN has a guided fiscal 2027 capex range of $25 billion to $30 billion. A higher interest rate increases the cost of borrowing for these companies.
The company's management noted in August that its 2026 AI capacity is largely sold out and carries about $4 billion of contracted annualized run-rate revenue. However, this revenue may not be fully recognized under GAAP until the capacity is commissioned, tested, and accepted by customers.