Cipher Digital Shifts to AI Data Centers as Bitcoin Miners Face Market Pressures

Cipher Digital Shifts Focus to AI Data Centers After Missing Bitcoin Projections

Cipher Digital has recently announced a strategic pivot away from Bitcoin mining, following a rebranding effort that has not met its initial projections. The company is now focusing on developing AI data centers, a move that reflects the changing landscape of the cryptocurrency market and the increasing demand for AI technologies. This shift comes as Cipher aims to adapt to the evolving market conditions and capitalize on more lucrative opportunities.

“The transition to AI data centers is a response to the current market dynamics and the need for more efficient and profitable operations,” stated a company representative.

Key Takeaway: Cipher Digital is moving away from Bitcoin mining to focus on AI data centers, indicating a significant shift in strategy amidst challenging market conditions.

Canaan Expands US Mining Operations with Acquisition of Cipher's Stake

Canaan Inc. has acquired a 49% stake in Cipher Mining's West Texas mining operations for $39.75 million in stock. This acquisition includes Cipher's interests in three operational Bitcoin mining sites, which collectively have a capacity of 120 megawatts and support approximately 4.4 exahashes per second of hashing power. The deal was financed through the issuance of 806.4 million Class A shares, making Cipher a significant shareholder in Canaan.

Following the announcement, Canaan's stock fell by 6%, while Cipher's shares increased by 4%. The acquisition is expected to enhance Canaan's position in the competitive mining landscape.

Key Takeaway: Canaan's acquisition of Cipher's stake marks a significant expansion of its mining operations in the US, reflecting ongoing consolidation in the cryptocurrency mining sector.

Bitcoin Miners Liquidate Holdings Amid Market Pressure

Bitdeer, a publicly traded Bitcoin mining company, has sold all of its cryptocurrency holdings, marking a drastic shift in strategy as the market faces significant downturns. Bitcoin's price recently dropped to $62,709.82, over 50% below its all-time high of $126,198.07 from October 2025. This liquidation comes as the overall cryptocurrency market capitalization fell by more than 4% in just 24 hours, indicating a climate of panic selling among investors.

In a notable trend, the CMC Fear and Greed Index has plummeted to just 11 points, signaling extreme fear in the market. Additionally, net outflows from US-listed Bitcoin spot ETFs reached $204 million, further illustrating the current market turmoil.

Key Takeaway: The liquidation of holdings by Bitdeer highlights the severe pressures facing Bitcoin miners as the cryptocurrency market experiences significant declines.

Impact of Trump's Global Tariffs on Bitcoin and Crypto Markets

President Donald Trump's recent announcement of a 10% global tariff on all imports has raised concerns among cryptocurrency investors. This move could lead to increased costs for Bitcoin miners, particularly those reliant on imported ASIC rigs and other mining equipment. The uncertainty surrounding these tariffs has prompted many investors to shift their assets from cryptocurrencies to cash or US Treasury bonds, potentially putting further pressure on Bitcoin prices.

As a result of these developments, Bitcoin's price fluctuated, closing near $67,700, while Ethereum also saw a slight increase. However, the overall sentiment remains cautious, with significant liquidations occurring in the market.

Key Takeaway: Trump's tariff announcement has introduced new uncertainties for the cryptocurrency market, potentially impacting Bitcoin miners and investor sentiment.

Sources:

• Weg von Bitcoin: Cipher Digital verfehlt Prognosen und setzt nach Rebranding auf KI-Rechenzentren
• Canaan erweitert seine US-Mining-Aktivitäten durch den Kauf des Texas-Joint-Venture-Anteils von Cipher
• Bitcoin: Ausverkauf bei Minern
• Wie Trumps globale Zölle von 10% die Bitcoin- und Kryptomärkte beeinflussen könnten