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DeepSeek AI Disruption Hits Crypto Mining Stocks Hardest
A sudden and drastic shift has shaken the crypto mining stocks market, leaving investors reeling as they struggle to come to terms with the implications of a groundbreaking new AI model. The news comes from China’s DeepSeek, which has unleashed a powerful low-cost AI service that is sending shockwaves throughout the industry.
As a result, major crypto-mining companies have seen their stock prices plummet by alarming margins. Riot Platforms (RIOT) took an 8% hit, while Cleanspark (CLSK) fell by 2.47%, Cipher Mining (CIFR) dropped significantly, and MARA Holdings (MARA) suffered a substantial loss. Even Coinbase’s shares went down by 10%, with MicroStrategy witnessing an 8.5% decline.
But what could be driving this unprecedented downturn? It all boils down to DeepSeek’s game-changing AI services. The company has managed to disrupt the status quo by offering its solutions at significantly lower prices than its competitors. This has sparked widespread concern about the long-term viability of AI investments, forcing many Bitcoin miners to diversify their operations beyond mining and into alternative sectors such as artificial intelligence and high-performance computing.
CORZ, for instance, has already taken a bold step in this direction by signing a 12-year deal with AI firm CoreWeave. Experts anticipate that it won’t be long before DeepSeek’s innovative AI model is seamlessly integrated into crypto AI projects.
In parallel, the value of AI-related cryptocurrency tokens has also suffered substantial losses. The total market capitalization for these assets declined by an astonishing 5.11% within the last 24 hours, falling to a staggering $42.33 billion. Venice Token (VVV), a cutting-edge project that boasts exclusive access to DeepSeek’s AI model, led the charge with a massive 20.29% plunge. Virtuals Protocol (VIRTUALS) also suffered a substantial hit of 11.75%.
This market downturn serves as a stark reminder of the immense challenges facing both the AI and crypto sectors.
Source: coinpedia.org
