Bitcoin mining companies expanding into artificial intelligence infrastructure fell roughly 35% in October, prompting investment manager VanEck to argue that the selloff looks overdone. The decline was driven largely by investor fears about financing costs rather than confirmed operational setbacks or cancelled commercial agreements.
According to VanEck, no signed lease agreements were cancelled during the period of market pressure. The firm noted that financing concerns in the AI computing sector spread broadly to Bitcoin miners, even though many of these companies have different business models and operate critical power infrastructure. Broader economic uncertainty, including a hotter-than-expected US consumer price index reading for September and concerns around the November midterm elections, also contributed to the risk-off mood.
VanEck believes existing power capacity and grid connections could become a competitive advantage for miners as AI data center demand grows. Limited electricity availability and lengthy grid connection delays may make mining facilities increasingly valuable. Still, the outlook carries execution risks: companies must secure sufficient capital, complete infrastructure upgrades, and meet customer requirements before AI-related hosting revenue becomes sustainable.
Overall, VanEck views the October correction as a potential buying opportunity rather than a sign that the industry’s AI expansion strategy has failed.
