The Bitcoin Mining Correction and the AI Reckoning?

Before the Consensus Catches Up

Having largely decoupled from Bitcoin, mining stocks have faced a sharp 20% drawdown. Below, we analyze what drove the latest rally and the sharp correction that followed, and outline the news flow likely to move these stocks in the days ahead, as well as what investors should watch for.

Bitcoin miners are now deeply intertwined with the AI theme, so Bitcoin investors need to closely monitor the changing narratives on that side of the market, too. That theme is less about adoption and the digitization of finance, and more about global supply chains and competition. This report touches on those dynamics, including the performance of Chinese LLM stocks and the outlook from the Korean semiconductor supply chain, both of which are now directly impacting Bitcoin mining stocks.

We also identify a potential date by which this correction could run its course.

Bitcoin miner Riot Platforms (LHS) vs. Semi SOX ETF (RHS)