{"id":10275,"date":"2025-03-26T20:53:25","date_gmt":"2025-03-26T19:53:25","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=10275"},"modified":"2025-03-26T20:53:25","modified_gmt":"2025-03-26T19:53:25","slug":"bitcoin-mining-stocks-face-decline-following-microsofts-withdrawal-from-data-center-initiatives","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/26\/bitcoin-mining-stocks-face-decline-following-microsofts-withdrawal-from-data-center-initiatives\/","title":{"rendered":"Bitcoin Mining Stocks Face Decline Following Microsoft’s Withdrawal from Data Center Initiatives"},"content":{"rendered":"

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Bitcoin (BTC<\/a>) mining shares have declined following reports that Microsoft, a technology behemoth, has allegedly canceled plans to invest in new artificial intelligence data facilities in both the US and Europe, citing a probable oversaturation, as reported by Bloomberg and data from Google Finance.<\/p>\n

Stocks of cryptocurrency miners including Bitfarms, CleanSpark, Core Scientific, Hut 8, Marathon Digital, and Riot decreased by a range of 4% to 12% in correlation with this announcement, according to the data.<\/p>\n

The decrease in stock prices underscores the cryptocurrency miners’ growing reliance on services from artificial intelligence models<\/a> following the Bitcoin network’s April 2024 \u201chalving,\u201d which impacted mining earnings.<\/p>\n

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CORZ intraday performance seen on Nasdaq. Source: <\/em>Google Finance<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

According to Coin Metrics in a March report, miners are \u201cexpanding into AI data-center hosting as a means to enhance revenue and re-utilize current infrastructure for high-performance computing.\u201d<\/p>\n

For instance, in June 2024, Core Scientific committed 200 megawatts of hardware capability to back CoreWeave\u2019s artificial intelligence workloads.<\/p>\n

In August 2024, asset management firm VanEck stated<\/a> that Bitcoin mining stocks could potentially gain approximately $37 billion in market capitalizations if they significantly invest in AI support.<\/p>\n

Nonetheless, miners have faced challenges this year<\/a> as dropping cryptocurrency values intensify pressures on enterprises already affected by April\u2019s halving, per JPMorgan\u2019s March analysis. Decreasing demand for AI data centers could create additional stress.<\/p>\n

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Bitcoin miners might experience valuation increases from shifting towards AI. Source: <\/em>VanEck<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>Invest more in the Bitcoin miners profiting from AI<\/strong><\/em><\/a><\/p>\n

Reducing processing power<\/strong><\/h3>\n

As of March 26, analysts from TD Cowen indicated that Microsoft has decided against establishing several new data centers that were planned to generate about 2 gigawatts of energy, as per<\/a> Bloomberg.\u00a0<\/p>\n

The analysts apparently attributed Microsoft\u2019s withdrawal to a recognized oversupply of computational capacity for AI models, along with the technology titan’s decision to halt certain planned collaborations with OpenAI, the creator of ChatGPT.<\/p>\n

Over the last six months, Microsoft has terminated various data center leases and postponed plans to add more capacity, as reported by Bloomberg.<\/p>\n

The company’s data center expenditures are predicted to further decelerate in the latter half of 2025 as Microsoft completes $80 billion in anticipated buildouts and shifts focus to outfitting existing centers with new hardware and equipment, according to Bloomberg.<\/p>\n

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