Bitcoin (BTC) mining stocks with AI exposure fell sharply Monday as investors reacted to the rise of Chinese AI startup DeepSeek. However, Piper Sandler believes the selloff was overdone, arguing that the broader AI sector remains strong.
Bitcoin miners have been leveraging their infrastructure for AI computing, diversifying beyond crypto. Analyst Patrick Moley suggested that DeepSeek’s emergence could actually fuel competition among U.S. AI firms, rather than diminishing demand. Despite discussions around DeepSeek’s low training costs, Moley does not anticipate a near-term shift in AI’s power requirements.
He also highlighted positive trends in Bitcoin mining, including potential price appreciation and improved regulatory conditions. Meanwhile, Bitcoin mining stocks continued to slide on Tuesday, extending losses from the previous session.
Core Scientific (NASDAQ:CORZ), Iris Energy (NASDAQ:IREN), TeraWulf (NASDAQ:WULF), Bit Digital (NASDAQ:BTBT), Hut 8 (NASDAQ:HUT), HIVE Digital Technologies (NASDAQ:HIVE), and Cipher Mining (NASDAQ:CIFR) all saw further declines despite broader market gains. Piper Sandler maintains a bullish long-term outlook on Bitcoin and sees Monday’s pullback as a buying opportunity for Bitcoin miners.
This article first appeared on GuruFocus.
