Bitcoin Miners Sold Off 35% in October as VanEck Calls Selloff Overdone
Bitcoin mining stocks that have expanded into AI data center infrastructure fell an average of 35% in October, according to reporting by CoinDesk and Bitcoinist. Asset manager VanEck argues the decline overstates the risk, pointing to valuations it says sit below what current business fundamentals support.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
The October Decline
Bitcoin mining companies that have added AI data center operations fell an average of 35% in October, according to Bitcoinist's review of the sector. CoinDesk reported that investors sold AI infrastructure providers across the board during the month, grouping companies from very different segments into a single trade.
What Drove the Selloff
Bitcoinist attributes the decline to concern over rising borrowing costs at AI computing companies, which spread to Bitcoin miners even though neither source reported any cancellations of signed hosting or data center contracts. CoinDesk frames the same episode as indiscriminate selling rather than a response to company-specific news. The two accounts agree that no fundamental deterioration at individual miners was cited in the reporting; they differ on whether the move reflected a sector-wide read on financing costs or a broader unwinding of the AI infrastructure theme.
VanEck's View
VanEck argues the selloff went further than the underlying businesses warrant and that the sector is now oversold. The firm's position rests on the claim that valuations have fallen below what existing contracted operations would justify, a view that depends on how the market prices those contracts and on the financing terms miners face. Neither source provided VanEck's valuation model or the specific companies it screened, so the strength of the claim cannot be independently assessed from the material available.
What to Watch
The key open question is whether borrowing costs at AI computing firms stabilize, since that is the stated trigger for the spillover. Reporting to date does not include post-October contract updates or financing announcements from the miners, which would be the most direct test of VanEck's thesis.
Why It Matters
For Traders
Miners exposed to AI hosting may stay volatile while financing-cost concerns persist, so position sizing around any refinancing news is worth watching closely.
For Investors
The divergence between sector-wide selling and unchanged contract status suggests valuation gaps may reflect sentiment as much as operating risk over a multi-month horizon.
For Builders
Teams building on miner-hosted compute should track how financing terms for AI infrastructure providers evolve, since borrowing costs now transmit directly into the sector's equity valuations.
This article is for information only and is not financial advice. Read the full disclaimer.
