Equities in bitcoin BTC$80,299.52 mining enterprises that transitioned toward artificial intelligence data center operations are currently undervalued, according to investment firm VanEck, which characterized the recent market drop as a valuation disconnect rather than a failure of the underlying strategy.
Equities for these firms fell by an average of 35% during October because market participants treated distinct business models as a single collective trade, the asset management firm explained in a Wednesday publication.
VanEck points out that bitcoin miners shifting into AI infrastructure—such as Hut 8 HUT and Core Scientific CORZ, identified as powered shell providers—were impacted by emotional contagion originating from graphics processing unit leasing businesses like CoreWeave.
Concerns regarding credit health bled over to powered shell providers, compounded by broader economic pressures including an unexpectedly high U.S. consumer price index report for September and caution preceding the November midterm elections.
Powered shell providers supply electricity to GPU leasing firms, which have grappled with elevated debt expenses while financing expensive processor chips.
VanEck highlights that “the power these companies control appears to be the binding constraint on AI compute.”
“At current levels we believe these stocks appear significantly dislocated from fundamentals given their long-term contracted cash flows.”
VanEck stresses that the primary physical restriction continues to be electrical capacity instead of customer demand. Although GPU rental businesses, frequently called neoclouds, confronted steep debt servicing expenses, importantly, zero executed rental agreements were terminated, stated VanEck.
Additionally, extensive delays in electrical grid interconnection queues naturally grant a high value of scarcity to the energy resources that bitcoin miners presently own.
This dynamic transforms the October market pullback into a potentially appealing investment window instead of a total unraveling of the AI transition thesis.
Originally published at https://www.coindesk.com/markets/2026/11/05/bitcoin-miners-are-oversold-following-35-october-rout-says-vaneck.
