Piper says Monday’s selloff in three bitcoin miners overdone

Piper Sandler says the selloff yesterday in shares of bitcoin miners is overdone. Monday’s “unraveling” artificial intelligence trade drove a 16% average decline for the mining names Piper covers, the analyst tells investors in a research note. The firm believes the miners’ AI-related value lies in their immediate access to power and the opportunity to sell that power to AI companies. If anything, the DeepSeek revelation should catalyze the “arms race” among U.S. AI companies, the firm contends. Piper says that while DeepSeek’s reportedly low training costs have many in the industry reevaluating the spending required for data center buildouts, it does not believe this will materially impact AI’s short-term power needs. It thinks Monday’s pullback represents an attractive entry point for bitcoin miners Hut 8 (HUT), Riot Platforms (RIOT), and Galaxy Digital (BRPHF).