Rising Treasury yields are carving through Bitcoin mining and AI infrastructure stocks Tuesday, but the real story is what a single basis point shift in long-term rates actually costs a company running a $25 billion capex pipeline.
Market Movers desk. Editor: David Moadel.
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A fresh backup in long-term Treasury yields is reversing Monday’s rebound across capital-hungry AI infrastructure and Bitcoin (CRYPTO:BTC)-mining names Tuesday morning. CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ:WGMI) declined 4% to $41.14, while Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) retreated 1% to $27.50. The selling is concentrated in buildout-heavy miners, not in the broader data-center category.
IREN Limited (NASDAQ:IREN) shares slipped 4% to $35.58, though it did recover some of that loss by 11:00 a.m. ET. The stock was down 1.7% year to date through Monday’s close, so the pullback keeps the name in a tight range even after last week’s fiscal fourth-quarter print.
TeraWulf (NASDAQ:WULF) shares slipped 4% to $14.464.46. Meanwhile, Cipher Mining (NASDAQ:CIFR) stock fell 6% to $14.564.56, the steepest same-day decline in the featured group at that moment.
A global bond selloff has lifted the 10-year Treasury note yield to 4.78%. Higher long-term yields raise the cost of the next tranche of debt these companies need to finance their pipelines, which is why a bond-market session hits harder here than an ordinary risk-off day would.
The miner made the mechanism concrete on August 27 when it disclosed $6.5 billion of GPU financing closed over three months, split between $3.6 billion of investment-grade funding at a 6% interest rate tied to the Microsoft contract and $2.8 billion of non-investment-grade equipment financing at a 9% fixed rate. With fiscal 2027 capital expenditures guided at $25 billion to $30 billion, the cost of the next credit tranche is the swing variable for equity value.
The buildout is capital-intensive by design, and the suppliers on the other side of these contracts, from power to cooling to networking, are quietly benefiting from the same spend (we pulled seven of them into a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers)).
IREN’s management told investors on August 27 that 2026 AI capacity is largely sold out and carries about $4 billion of contracted annualized run-rate revenue, with current operating annualized run-rate revenue of about $1 billion. The company defines that run-rate as an operating metric based on contracted GPU-hour pricing, and cautions that recognized GAAP revenue may be materially lower until capacity is commissioned, tested, and accepted by customers.
Fourth-quarter AI cloud revenue for IREN was $70.5 million, more than double the prior quarter, and full-year AI cloud revenue climbed roughly eightfold to $128.8 million28.8 million. Total quarterly revenue was $137.2 million37.2 million against a net loss of $684 million driven mostly by non-cash impairments as mining hardware came offline. The company also delivered Horizon 1, the first of four 50-megawatt liquid-cooled deployments for Microsoft (NASDAQ:MSFT | MSFT Price Prediction), in August.
Short interest in IREN shares stood at 27% of float heading into Tuesday, which amplifies moves in both directions and helps explain why a broad-rates session translates into an outsized single-name print. H.C. Wainwright reiterated a Buy rating with a $90 price target on IREN stock after the August 27 disclosures, well above the current handle.
Investors can watch for whether the 10-year yield holds near the 4.8% level into Tuesday’s close. Continued pressure at the long end would reprice the marginal cost of GPU and data-center financing for every name in the WGMI basket, which reads as the mechanical driver behind today’s split versus DTCR. Position sizing should reflect the leverage embedded in these balance sheets and the elevated short float in IREN, which can produce sharp intraday reversals in either direction.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.
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