(Bloomberg) — Cryptocurrency-linked stocks sank on Monday after the success of a low-cost Chinese AI model shook investor confidence, sparking a retreat from risky assets and pummeling shares of companies that were set to benefit from the surge of spending on AI data centers.
Shares of the crypto-mining firm Core Scientific fell 29%, while fellow mining companies like Hut 8, Riot Platforms and Cipher Mining also saw their stocks plunge. Among other crypto names, Coinbase Global shares fell 6.6% and BTCS Inc. shares dropped 13%.
Chinese startup DeepSeek’s new model, which appears to have reached a comparable performance to Western chatbots at a fraction of the expense, sparked a selloff in technology stocks Monday.
Investors are questioning hundreds of billions of dollars in…
