Bitcoin (BTC<\/a>) mining stocks are down after tech giant Microsoft reportedly scrapped plans to invest in new artificial intelligence data centers in the US and Europe, citing a potential oversupply, according to a report by Bloomberg and data from Google Finance.<\/p>\n Shares of crypto miners Bitfarms, CleanSpark, Core Scientific, Hut 8, Marathon Digital and Riot dropped between 4% and 12% in tandem with the news, the data showed.<\/p>\n The stock price retrenchments highlight cryptocurrency miners\u2019 increased dependence on business from artificial intelligence models<\/a> after the Bitcoin network\u2019s April 2024 \u201chalving\u201d cut into mining revenues.<\/p>\n CORZ intraday performance on the Nasdaq. Source: <\/em>Google Finance<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Miners are \u201cdiversifying into AI data-center hosting as a way to expand revenue and repurpose existing infrastructure for high-performance computing,\u201d Coin Metrics said in a March report.<\/p>\n For example, in June 2024, Core Scientific pledged 200 megawatts of hardware capacity to support CoreWeave\u2019s artificial intelligence workloads.<\/p>\n In August 2024, asset manager VanEck said<\/a> Bitcoin mining stocks could collectively see a roughly $37 billion bump to market capitalizations if they invest heavily in supporting AI.<\/p>\n Nevertheless, miners have struggled this year<\/a> as declining crypto prices worsen pressures on businesses already impacted by April\u2019s halving, JPMorgan said in March. Waning demand for AI data centers could add further strain.<\/p>\n Bitcoin miners could see gains in valuation from pivoting to AI. Source: <\/em>VanEck<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Related: <\/strong><\/em>Bet more on the Bitcoin miners cashing in on AI<\/strong><\/em><\/a><\/p>\n On March 26, analysts at TD Cowen said Microsoft had abandoned plans to build several new data centers that would have generated some 2 gigawatts of power, according<\/a> to Bloomberg.\u00a0<\/p>\n The analysts reportedly attributed Microsoft\u2019s pullback to a perceived oversupply of computing capacity for AI models, as well as the tech giant\u2019s decision to forgo some planned collaborations with ChatGPT maker OpenAI.\u00a0<\/p>\n In the past six months, Microsoft has canceled various data center leases and delayed plans to onboard more capacity, according to Bloomberg.\u00a0<\/p>\n Microsoft\u2019s data center investments are expected to slow further in the second half of 2025 as the company finishes $80 billion in planned buildouts and pivots to outfitting existing centers with hardware and equipment, Bloomberg said.\u00a0<\/p>\n Magazine: <\/strong><\/em>Memecoins are ded \u2014 But Solana \u2018100x better\u2019 despite revenue plunge<\/strong><\/em><\/a><\/p>\n <\/p>\n<\/div>\nCutting back on compute<\/strong><\/h3>\n