Bitcoin Slide Meets 5.7% Bond Yields: Neoclouds Get Hit From Both Sides
The former Bitcoin (CRYPTO:BTC) miners that rebuilt themselves as AI data-center landlords are getting squeezed from two sides Thursday. Bitcoin is sliding again, and long-term borrowing costs keep climbing for a group that funds its buildouts with debt. Shares of Cipher Digital Inc. (NASDAQ: CIFR ), Riot Platforms Inc. (NASDAQ: RIOT ), CleanSpark Inc. (NASDAQ: CLSK ), IREN Ltd. (NASDAQ: IREN ), TeraWulf Inc. (NASDAQ: WULF ), Nebius Group N.V. (NASDAQ: NBIS ) and Applied Digital Corp. (NASDAQ: APLD ) all traded lower in the morning session. Most sit roughly 50% or more below their 52-week highs. IREN stock is moving. See the real-time price action here. Bond Market Bites The 30-year Treasury yield rose more than 4 basis points to 5.705% Thursday morning after trading just below a 24-year high in the prior session, according to Trading Economics. The 10-year yield touched its highest level since 2002 on Wednesday. Minutes from the latest Federal Reserve meeting showed officials expect to raise rates again before year-end, and investors are betting on a hike on Dec. 9. Read Also: Palantir Gets Goldman Sachs Upgrade as Sovereign AI Opens New Market Higher yields hurt the neocloud grou
The former Bitcoin (CRYPTO:BTC) miners that rebuilt themselves as AI data-center landlords are getting squeezed from two sides Thursday. Bitcoin is sliding again, and long-term borrowing costs keep climbing for a group that funds its buildouts with debt. Shares of Cipher Digital Inc. (NASDAQ: CIFR ), Riot Platforms Inc.
(NASDAQ: RIOT ), CleanSpark Inc. (NASDAQ: CLSK ), IREN Ltd. (NASDAQ: IREN ), TeraWulf Inc. V.
(NASDAQ: NBIS ) and Applied Digital Corp. (NASDAQ: APLD ) all traded lower in the morning session. Most sit roughly 50% or more below their 52-week highs. IREN stock is moving.
See the real-time price action here. 705% Thursday morning after trading just below a 24-year high in the prior session, according to Trading Economics. The 10-year yield touched its highest level since 2002 on Wednesday. Minutes from the latest Federal Reserve meeting showed officials expect to raise rates again before year-end, and investors are betting on a hike on Dec.
9. Read Also: Palantir Gets Goldman Sachs Upgrade as Sovereign AI Opens New Market Higher yields hurt the neocloud group twice. Debt gets more expensive, and long-dated lease income is worth less in today’s dollars. The borrowing is real.
2 billion of senior secured notes to buy Nvidia equipment. 8 billion on chips and $3 billion on other costs, 7 billion in chip financing. 9%, after dipping as low as $81,710, per Pro. The token is down roughly 35% from its 52-week high of $126,296.
Miners like Riot and CleanSpark still lean heavily on mining revenue. A weaker bitcoin price squeezes margins while the AI hosting business is still ramping up. See More: Top Momentum Stocks Rich Multiples, Little Cushion Valuations add to the pressure. Reuters described Cipher, TeraWulf and Hut 8 Corp.
(NASDAQ: HUT ) as “powered-shell” landlords signing leases as long as 15 years. Long leases with built-in rent escalators look safe. But those cash flows stretch years into the future, and the further out they run, the harder rising yields hit their present value. 3% below its 52-week high.
9% below its 52-week high. 3% below its 52-week high. 4% below its 52-week high. 3% below its 52-week high.
7% below its 52-week high. Read Also: Wolfspeed Stock Soars on Massive Pentagon Loan Commitment Photo: Shutterstock