Crypto mining firms are basking in the spotlight as shares of Cipher Mining, Hive Digital, Hut 8, and TeraWulf surged between 10% and 20% on Friday. The catalyst? A colossal $4 billion partnership between CoreWeave and OpenAI, the brains behind ChatGPT, is electrifying the sector with promises of burgeoning AI computing demand. Meanwhile, CoreWeave itself saw its stock skyrocket by over 26%, underscoring its pivotal role in the digital transformation landscape.
AI and Crypto: A Symbiotic Surge
What’s driving this meteoric rise? It appears the crypto mining sector is increasingly seen as a proxy for AI-linked infrastructure, thanks to their expansive data center assets. Industry insiders are buzzing about the potential for these data centers to pivot towards AI processing—a shift that could turbocharge their growth trajectories. “We’re witnessing a paradigm shift,” says Jane Thornton, an analyst at Crypto Insights. “These companies are no longer just mining cryptocurrency; they’re evolving into critical players in the AI ecosystem.” This trend aligns with broader developments in the sector, as detailed in our recent coverage of AI-powered systems entering the crypto space.
Galaxy Digital also rode the wave, climbing 8% on its inaugural Nasdaq trading day. Previously listed in Toronto, this debut marks a significant milestone for the firm, which is renowned for its crypto investment management and digital asset trading. Its own data center operations add another layer of potential synergy with AI, as explored in our article on Galaxy Digital’s Nasdaq listing plans.
Coinbase Rebounds Amidst Regulatory Woes
Elsewhere in the crypto-verse, Coinbase shook off recent woes, rebounding 9% after a tumultuous Thursday marked by a customer data breach and the specter of ongoing scrutiny from the U.S. Securities and Exchange Commission (SEC). “The market’s reaction was overblown,” argues Mark Jensen, a senior analyst at MarketWatch. “While the SEC’s probe remains a cloud over Coinbase, the fundamentals remain strong.”
Meanwhile, DeFi Development dazzled with a 45% leap to new heights. News of a strategic validator operation deal with memecoin BONK and an increase in Solana holdings sent its stock soaring, illustrating the volatile yet thrilling nature of crypto investments.
Inflation Clouds and Crypto Silver Linings
On the macroeconomic front, inflation expectations continue to loom large. The University of Michigan’s recent survey reveals consumers anticipate a 1-year inflation surge to 7.3%, the highest since the 1980s. This has stirred concerns about the Federal Reserve’s potential pause on rate cuts—a scenario that could ripple through financial markets. “The Fed is watching these expectations closely,” notes Louis Navellier, chief investment officer at Navellier. “Inflation fears could very well put the brakes on any rate reduction plans.”
Despite these inflationary headwinds, traditional markets seemed unfazed, with major U.S. stock indices inching upwards. Yet, the crypto market’s resilience in the face of such economic turbulence is noteworthy. Bitcoin held steady above $104,000, rising slightly by 1.3%, while Ether appreciated by 2.3% to $2,580, suggesting investor confidence in digital currencies remains robust.
The Road Ahead
As we forge deeper into 2025, the symbiosis between AI and crypto promises to be a defining theme. However, uncertainties linger. Will rising inflation expectations dampen the crypto rally? Can crypto firms continue to leverage AI to sustain their growth? And how will regulatory landscapes evolve—especially with entities like the SEC casting long shadows?
While the answers remain elusive, one thing is certain: the crypto and AI sectors are on a fascinating collision course, and the world will be watching how this narrative unfolds.
Source
This article is based on: Crypto Miners Soar on OpenAI-CoreWeave Deal; Galaxy Jumps in Nasdaq Debut
Further Reading
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- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
