Bitcoin miners lost up to 13% amid the worst sell-off on Wall Street since July, triggered by unexpectedly high inflation. On Wednesday, U.S. stocks sharply declined after data came in worse than expected. The S&P 500 index lost 1.1% — the most since July 29; Nasdaq Composite — 1.9%, the most since July 23; Dow Jones Industrial Average — 0.1%. Among major tech companies, data center operator CoreWeave suffered the most (−16%), AI infrastructure provider Nebius (−11%), and Oracle (−9%). Out of 23 stocks in the AI Data Center and Infrastructure Index by PRISM, 21 fell, on average by 7.46%.
The pressure also spread to Bitcoin miners, some of which have expanded into AI infrastructure. TeraWulf fell by 12.64%, Core Scientific by 12.44%, Cipher Mining by 12.35%, IREN by 12.2%. Riot Platforms, Bitdeer Technologies, Marathon Digital (MARA), and CleanSpark also declined. Higher rates could increase borrowing costs for AI infrastructure companies, many of which are actively financing data center expansions on credit.
Consumer prices in the U.S. rose by 3.7% year-over-year in September, against expectations of 3.6% and significantly above the Fed's target of 2%; the cause was higher gasoline prices due to the conflict in the Middle East. The report heightened expectations of a Fed rate hike in October: the implied probability briefly exceeded 50% on Wednesday before retreating. However, San Francisco Fed President Mary Daly told Reuters that while further hikes may be needed to control inflation, there is no urgency to act this month. “I don't feel that we need to make a decision with a limited set of information. I think we have the right time,” Daly noted.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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