The divergence between AI and bitcoin continues to widen. Bitcoin (BTC) has slipped below $63,000 and is now trading around $62,900, while AI-related stocks continue to extend their gains.
Among AI-linked miners, Cipher Digital (CIFR) is up 10% and has reached new all-time highs. TerraWulf (WULF) has added another 4%, Galaxy Digital is up 4%, WhiteFiber (WYFI) has surged 15%, and IREN (IREN) is higher by 3%.
The strength is also evident across semiconductors and memory stocks, which continue to push to fresh highs. The DRAM ETF has gained 10%, while the VanEck Semiconductor ETF (SMH) is up 5%. Among individual names, Micron Technology (MU) has risen 7%, and Sandisk has jumped 11%, highlighting the continued investor appetite for AI infrastructure exposure.
Strategy's high-yielding preferred stock STRC continues to sell off, falling to a new record low of $85.32 Thursday morning. It's bounced a hair in recent minutes to $86.20, still down 3.15% for the day.
One prevailing narrative was that investors were rotating out of STRC and into Strive's similar security, SATA, due to SATA's daily dividend feature and higher yield. That narrative is falling by the wayside today as SATA is also down 3.15% and trading well below par at $96.85.
Bitcoin (BTC) is at a session low of $63,500, down 2.5% over the past 24 hours. U.S. stocks, meanwhile, are surging, the Nasdaq higher by 1.4%.
SpaceX (SPCX) is lower by 4% in early trading on Thursday, trading below $185.
That's down from an intraday high of $225 earlier this week, but still higher by more than 35% from its $135 IPO price.
The details aren't really that important. The struggles of bitcoin, Strategy, and its high-yielding preferred stock STRC have been well-known and well-covered for months.
With bitcoin back. near multi-year lows, Strategy common stock (MSTR) near a 52-week low, and STRC plunging to 11% below par value, the FT and its Alphaville editors — persistently negative on all things crypto for as long as the sector has existed — minutes ago published yet another of their obituaries.
"Stretch is beginning to operate like a tapeworm inside the Strategy belly," wrote Craig Coben. "The longer it remains there, the more nutrients it consumes. It may be better to expel it sooner rather than later."
"Stretch was marketed as an 'iPhone moment' for digital credit, but it has turned into something far more sinister for shareholders," Coben concluded.
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