Bitcoin miners are oversold following 35% October rout, VanEck says
Source: CoinDesk ·
From the source
Investors dumped AI infrastructure providers across the board in October, treating companies in very different sectors as one monolithic trade. Shares in bitcoin BTC $80,310.00 mining companies that pivoted to artificial intelligence (AI) data center infrastructure look oversold, investment manager VanEck has argued, calling the recent crash a “dislocation”, rather than an outright rejection of the business model. Prices for these shares dropped by an average 35% in October, as investors treated companies in very different sectors as one monolithic trade , the investment manager said in a note on Wednesday. VanEck argues bitcoin miners that pivoted to AI data infrastructure such as Hut 8 HUT and Core Scientific CORZ – which it refers to as powered shell providers (PSPs) – suffered from contagion fears spread from GPU rental companies such as CoreWeave (CRWV). Credit fears spread to PSPs, alongside macro factors such as a hotter-than-expected U.S. consumer price index (CPI) read in…