Analyst sees recent 13-22% declines in former Bitcoin miners as overdone amid Meta cloud competition fears.
Rosenblatt Securities identified Galaxy Digital (GLXY) and Cipher Digital (CIFR) as oversold following a 13-22% two-week drop in high-performance computing (HPC) stocks. GLXY and CIFR traded at $25.14 and $20.98, respectively, as of the latest session, extending losses after reports of Meta Platforms entering the cloud market with AI compute capacity.
The selloff accelerated after Bloomberg revealed Meta’s plans to offer cloud services to external customers, sparking concerns over competition in the neocloud stack. CoreWeave-linked stocks faced the steepest declines, with CoreWeave itself falling nearly 14% on July 1. Analyst Chris Brendler dismissed the reaction as excessive, arguing Meta’s move was company-specific and unrelated to broader demand trends.
Brendler highlighted GLXY’s direct exposure to CoreWeave, which made it vulnerable to read-throughs from the Meta headline. Galaxy’s Helios data center expanded its CoreWeave partnership in 2025 by 133 megawatts, reinforcing its position in the sector.