Cryptocurrencies
Crypto Stocks Hit as AI Plays Sink, Traders Flee Risk Assets
- Mining companies slump amid concerns about demand for servers
- Chinese startup DeepSeek’s AI model has shaken Wall Street
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Cryptocurrency-linked stocks sank on Monday after the success of a low-cost Chinese AI model shook investor confidence, sparking a retreat from risky assets and pummeling shares of companies that were set to benefit from the surge of spending on AI data centers.
Shares of the crypto-mining firm Core Scientific fell 29%, while fellow mining companies like Hut 8, Riot Platforms and Cipher Mining also saw their stocks plunge. Among other crypto names, Coinbase Global shares fell 6.6% and BTCS Inc. shares dropped 13%.