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Crypto Biz: AI took a back seat when Bitcoin started climbing

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Corporate crypto bets are getting bigger as rising markets reward direct exposure, putting balance-sheet strategies and institutional adoption back in focus.

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Bitcoin’s August rally lifted beaten-down mining stocks by as much as 67%, reversing a trend that had favored miners pivoting to AI and underscoring the sector’s continued sensitivity to BTC market conditions. BlocksBridge Consulting reported in a recent newsletter that Bitcoin’s roughly 23% rally in late August outpaced most AI-linked infrastructure stocks. BlocksBridge cited three catalysts for the rally: an expansion of US Treasury liquidity-supporting buybacks, renewed regulatory optimism following a White House crypto meeting and a sharp short squeeze that liquidated more than $1.6 billion in positions. The outperformance suggests investors may once again be rewarding direct Bitcoin exposure, although the sector still faces risks from the high costs of building out AI data-center capacity.

Read full article at Cointelegraph →

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