Crypto Mining Stocks Hit Hard as DeepSeek’s AI Model Triggers Sell-Off

Crypto mining stocks are taking a hit as a new AI model from China’s DeepSeek disrupts the market. With AI becoming more dominant, concerns about overvaluation are growing, putting pressure on Bitcoin miners and other crypto-related stocks in an already volatile market.

DeepSeek’s AI Model Triggers Sell-Off

For the second consecutive day, crypto mining stocks faced heavy losses. Major tech stocks began to recover, but crypto-related stocks were hit hard. The sell-off was mainly triggered by DeepSeek’s AI model, which quickly became the most downloaded app in Apple’s App Store.

Investors are now questioning the future of AI investments, affecting tech and crypto markets.

Crypto Mining Stocks Crash

Some of the biggest crypto-mining companies saw their stock prices drop by 5% to 10%. Riot Platforms (RIOT) faced a major decline, and Cleanspark (CLSK) fell by 2.47%. Cipher Mining (CIFR) and MARA Holdings (MARA) also saw their shares drop. Coinbase’s stock decreased by 10%, and MicroStrategy, the largest corporate holder of Bitcoin, saw a 8.5% drop.

The market’s reaction is due to growing uncertainty around AI’s value. DeepSeek, which offers services at much lower prices than its competitors, is causing doubts about the long-term sustainability of AI investments.

Bitcoin Miners Look to Diversify

Bitcoin miners, already struggling after Bitcoin’s fourth halving in April, are expanding their operations beyond traditional mining. Many are turning to AI and high-performance computing (HPC).

For example, CORZ signed a 12-year deal with AI firm CoreWeave, showing that miners are adapting to the changing market. Experts believe DeepSeek’s AI model will soon be integrated into crypto AI projects.

The market downturn is also affecting AI-related crypto tokens. The total market value for these tokens dropped by 5.11% in the last 24 hours, bringing it down to $42.33 billion. Venice Token (VVV), which claims to offer private access to DeepSeek’s AI model, saw a 20.29% drop in value. Another platform, Virtuals Protocol (VIRTUALS), fell by 11.75%.