35% Drop in Bitcoin Miners' Stocks in October

The stocks of Bitcoin mining companies that have turned to AI data center infrastructure have fallen by an average of 35% in October. VanEck Investment Management considers this decline irrational and believes that the market is treating the risk of electricity infrastructure providers the same as that of companies renting AI graphics processors. Concerns about the heavy debts of companies like Core Scientific have spread to the stocks of HUT 8 and Core Scientific. Rising interest costs and worries about the financial capacity of AI companies have raised doubts about their ability to pay long-term data center rents. VanEck emphasizes that the business models of miners and AI companies are different, with miners providing infrastructure such as land and access to electricity. Additionally, access to sufficient electricity is one of the biggest barriers to the development of AI data centers. Large data center lease contracts remain in place, but customers' financial issues, project delays, and changes in energy regulations could impact profitability. The realization of the expected value of these companies depends on their customers' ability to meet their obligations.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.