Stocks in crypto mining linked to the surging artificial intelligence (AI) data center sector quickly bounced back on Monday following a challenging market on Friday.
On Monday, Bitfarms (BITF) and Cipher Mining (CIFR) experienced increases of 26% and 20%, respectively, while Bitdeer (BTDR), IREN (IREN), and MARA Holdings (MARA) saw gains of around 10%. This rally showcases a growing optimism that the surge in AI computing demand will support miners.
Adding to the positive sentiment, OpenAI, the creator of ChatGPT, announced a partnership with Broadcom (AVGO) to develop custom chips for AI and machine learning. Additionally, Bloom Energy (BE) revealed a $5 billion agreement with Brookfield Asset Management to install fuel cells in data centers, catering to the high energy demands of AI.
The upswing followed a significant drop on Friday due to escalating trade tensions between the U.S. and China, with Trump imposing a 100% tariff increase on Chinese imports in response to stricter export controls on rare earth metals. However, investor anxiety lessened over the weekend, with the Nasdaq and S&P 500 indexes rising 2.1% and 1.4% on Monday.
Other crypto-related stocks also managed slight gains. Strategy (MSTR), the largest bitcoin treasury firm in the world, increased by 2.8%, while crypto exchange Coinbase remained relatively stable. Digital brokerage Robinhood, which derives a significant portion of its revenue from crypto trading, saw a 1% uplift.
Ethereum treasury firm BitMine (BMNR) quickly rebounded by nearly 7% after announcing plans to take advantage of the recent crypto market dip by acquiring over 200,000 tokens valued at more than $840 million at current rates.
Read more: Tom Lee’s BitMine Bought the Dip, Adding Over 200K ETH to Ethereum Treasury
