The stocks of cryptocurrency miners are surging on news of a new artificial intelligence (AI) deal involving technology giants Nvidia (NVDA) and Microsoft (MSFT).
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A newly formed investment group made up of BlackRock (BLK), Nvidia, Microsoft, privately held xAI, and others is acquiring Aligned Data Centers in a $40 billion deal. The move adds fuel to the growth of AI infrastructure that supports the technology’s development.
Investors are bidding up crypto miner stocks such as Hut 8 (HUT), IREN (IREN), Bitfarms (BITF), and CleanSpark (CLSK) on expectations that they will benefit from ongoing investments by technology giants in AI data centers. Many crypto miners can also power and help operate data centers.
Big Bucks
The consortium that’s buying Aligned Data Centers, called the Artificial Intelligence Infrastructure Partnership, could invest as much as $100 billion in data centers moving forward. Aligned operates data centers for clients including hyperscalers, enterprise firms, and cloud providers across 50 campuses with more than five gigawatts of operating and planned capacity.
The acquisition comes amid a scramble to secure the compute power needed for massive and power-intensive AI workloads. Shares of Bitcoin (BTC) mining firms, particularly those that have changed their business models to also include AI infrastructure, are up as much as 10% on Oct. 15.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 3.68% in the last 12 weeks.
