AI/HPC Bitcoin Miners Rally as AMD Soars 30% on OpenAI Deal
OpenAI has entered into a substantial agreement with Advanced Micro Devices (AMD), planning to purchase chips valued at tens of billions of dollars. This deal could potentially allow OpenAI to acquire up to a 10% stake in AMD over time. Following the announcement, AMD shares increased by around 30%, trading at approximately $225.
- The purchase will provide OpenAI with a computing power capacity of 6 gigawatts (GW).
- 1 GW of capacity is estimated to cost about $50 billion, covering both chips and supporting infrastructure.
This large-scale contract has positively impacted AI and HPC-focused miners:
- Bitfarms (BITF) gained 8%
- IREN rose 12%, reaching all-time highs around $56
- Hive Digital (HIVE) advanced 12%
- Cipher Mining (CIFR) climbed 7%
- CleanSpark (CLSK) and TerraWulf (WULF) both increased by 5%
Galaxy Expanding into AI/HPC
Galaxy Digital (GLXY) is benefiting from the re-pricing in the AI and HPC sector. The company has retrofitted its Helios campus into an AI/HPC data center and secured $1.4 billion for this project. It signed a long-term lease with CoreWeave for up to 800 MW of compute capacity.
- GLXY shares rose by 5% following the AMD news and the launch of GalaxyOne, a wealth management platform offering a 4% yield on FDIC-insured cash with automatic investment options into cryptocurrencies and U.S. equities.
- Year-to-date, GLXY shares have increased by 116%.