Down an average of 35% in a month, yet the asset management giant says they’ve been unfairly punished 🦖
📢 ⏰ 消息群里第一时间说
In October’s AI sector, one group of companies got hit across the board: businesses that pivoted from Bitcoin mining to AI data centers.
VanEck ran the numbers on them in a report on Wednesday.
Their share prices fell by an average of 35% in October.
Hut 8 and Core Scientific were both called out.
VanEck refers to them as power-shell providers.
The real reason has little to do with the companies themselves.
GPU rental companies took on high-interest debt to buy chips.
As yields on AI debt rise, credit concerns ripple down the chain.
New cloud companies like CoreWeave get sold off,
and investors also sell the mining companies that power them.
Even September’s higher-than-expected CPI became a reason to push prices down.
But VanEck believes the risks facing these two businesses are fundamentally different.
New cloud companies worry about interest costs and chip depreciation.
Mining companies hold grid access rights, long-term leases, and facilities that are already powered up.
One line in the report is especially important:
The power these companies control is the real bottleneck for AI computing 😮
An even stronger point: so far, not a single signed lease has been canceled.
Demand hasn’t disappeared; only valuations have.
And as grid-access queues keep getting longer,
energy capacity that already has grid access is becoming a scarce asset.
VanEck’s conclusion is that share prices have clearly diverged from the fundamentals implied by long-term contracted cash flows.
My take is that the market isn’t trading on the idea that AI demand has peaked.
It’s trading on the fragility of the AI financing chain.
Those two things have been lumped together as one reason to sell.
The ones being unfairly punished are the companies with power, not the ones with chips ⚠️
Of course, the risks are still there. If leases start getting canceled, the thesis will have to be rewritten.
If yields on AI debt climb further, the pressure will return.
Bitcoin is now around $79,600, up about 1.8% in 24 hours 📈
But mining stocks are still stuck in October’s hole.
How long can this divergence last? The next lease announcement and grid-connection queue data are worth watching.
Do you think this is an overreaction, or are AI infrastructure valuations only just starting to return to normal?
Let’s talk in the comments.
Every day, I bring you the latest crypto market stories—not just what’s happening, but the logic and opportunities behind it 👀🚀
📢 ⏰ 消息群里第一时间说
In October’s AI sector, one group of companies got hit across the board: businesses that pivoted from Bitcoin mining to AI data centers.
VanEck ran the numbers on them in a report on Wednesday.
Their share prices fell by an average of 35% in October.
Hut 8 and Core Scientific were both called out.
VanEck refers to them as power-shell providers.
The real reason has little to do with the companies themselves.
GPU rental companies took on high-interest debt to buy chips.
As yields on AI debt rise, credit concerns ripple down the chain.
New cloud companies like CoreWeave get sold off,
and investors also sell the mining companies that power them.
Even September’s higher-than-expected CPI became a reason to push prices down.
But VanEck believes the risks facing these two businesses are fundamentally different.
New cloud companies worry about interest costs and chip depreciation.
Mining companies hold grid access rights, long-term leases, and facilities that are already powered up.
One line in the report is especially important:
The power these companies control is the real bottleneck for AI computing 😮
An even stronger point: so far, not a single signed lease has been canceled.
Demand hasn’t disappeared; only valuations have.
And as grid-access queues keep getting longer,
energy capacity that already has grid access is becoming a scarce asset.
VanEck’s conclusion is that share prices have clearly diverged from the fundamentals implied by long-term contracted cash flows.
My take is that the market isn’t trading on the idea that AI demand has peaked.
It’s trading on the fragility of the AI financing chain.
Those two things have been lumped together as one reason to sell.
The ones being unfairly punished are the companies with power, not the ones with chips ⚠️
Of course, the risks are still there. If leases start getting canceled, the thesis will have to be rewritten.
If yields on AI debt climb further, the pressure will return.
Bitcoin is now around $79,600, up about 1.8% in 24 hours 📈
But mining stocks are still stuck in October’s hole.
How long can this divergence last? The next lease announcement and grid-connection queue data are worth watching.
Do you think this is an overreaction, or are AI infrastructure valuations only just starting to return to normal?
Let’s talk in the comments.
Every day, I bring you the latest crypto market stories—not just what’s happening, but the logic and opportunities behind it 👀🚀