Bitcoin mining stocks staged a sharp rebound Monday, led by AI-focused firms, as bitcoin reclaimed the $90,000 level.
The recovery follows a sell-off last week triggered by regulatory enforcement in China’s Xinjiang region that pressured cryptocurrency prices.
Firms pivoting to AI data centers led the rally, posting average gains exceeding 10% before the market opened. Applied Digital (NASDAQ: APLD) topped the sector with a 16.53% surge, while Hut 8 (NASDAQ: HUT) climbed 14.33% to $44.12 and IREN (NASDAQ: IREN) rose 11.51%.
CleanSpark (NASDAQ: CLSK) rose 7.41% and Hive Digital Technologies (NASDAQ: HIVE) increased 7.61%. Core Scientific (NASDAQ: CORZ) and Cipher Mining (NASDAQ: CIFR) recorded gains of 7.14% and 7.00%, and TeraWulf (NASDAQ: WULF) and Marathon Digital (NASDAQ: MARA) rounded out the recovery with increases of 6.19% and 5.06%.
Hut 8 shares outperformed much of the broader market after the company announced a hosting agreement with Fluidstack and Anthropic valued at approximately $7 billion over 15 years. The deal includes a 3% annual escalator and includes potential expansion to $17.7 billion with an additional 2 GW of capacity.
Last week was volatile for both bitcoin mining stocks and Bitcoin’s hashrate, as authorities in Xinjiang intensified scrutiny on bitcoin miners operating in the gray market. This crackdown put pressure on approximately 1.3 gigawatts of power capacity.
Officials characterized the Xinjiang initiative as rolling inspections rather than a single seizure event. According to sources familiar with the event, regulators relocated some mining machines to government-designated warehouses, targeting operators who had advertised hosting services on social media platforms including Red Note and TikTok.