Microsoft Reduces Data Centers: Bitcoin Mining Stocks Plummet, BTC Prices at Risk!
TradingKey - Microsoft has canceled its AI data center plans in the US and Europe. This has led to a sharp decline in Bitcoin mining stocks, which could further impact Bitcoin prices.
According to Bloomberg, tech giant Microsoft (MSFT)scrapped its investment plans due to oversupply. This decision has had a significant negative impact on the stock prices of Bitcoin (BTC) mining companies. Here are the details:
Company Name | Stock Price Change (March 26) |
Core Scientific | -11.89% |
Cipher Mining | -11.84% |
Riot | -7.17% |
Bitdeer | -7.64% |
Hive Digital | -7.18% |
CleanSpark | -6.99% |
Bitfarms | -6.87% |
Hut 8 | -5.34% |
Bit Digital | -5.06% |
Marathon Digital | -3.32% |
To boost revenue, Bitcoin mining firms have begun adding AI data centers for hosting services. In a March report,Coin Metrics stated that "miners are diversifying into AI data center hosting to expand income and repurpose existing infrastructure for high-performance computing."
Currently, Bitcoin miners face three major challenges: the upcoming Bitcoin halving, which will reduce mining rewards;stagnant Bitcoin prices; and declining demand for AI data center services. Together, these factors are placing increasing pressure on miners' profitability.
To cover daily operational expenses, miners may be forced to sell Bitcoin, potentially putting downward pressure on BTC prices. At present, Bitcoin is struggling to break through the $90,000 level and is currently trading at $87,387.
Bitcoin price chart, source: TradingView.
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