Trump-linked tokens and AI data centre stocks fall after US midterms
The Democratic midterm sweep has impacted cryptocurrencies tied to Donald Trump and companies involved in Texas data-centre projects.
Digital assets and stocks linked to Donald Trump and AI data-centre projects have declined following the Democrats' midterm sweep in the US, according to reports by Moneycontrol and Hindustan Times. The price of WLFI tokens from World Liberty Financial, co-founded by Trump, dropped about 6 per cent in the last 24 hours, while his namesake memecoin fell about 19 per cent.
Trump Media & Technology Group Corp. shares tumbled 25 per cent, and the exchange-traded fund DJTU, which provides leveraged exposure to the company, declined almost 50 per cent. World Liberty Financial declined to comment on the price drop, though spokesman David Wachsman stated the company has complied with all applicable US laws and regulations.
Investors are also reassessing plans to convert mining facilities into AI campuses. In Texas, the election of Governor Gina Hinojosa, who campaigned against unrestricted data-centre development, threatens a major pipeline of computing capacity. Texas accounts for nearly 30 per cent of the US data centre capacity expected to come online in 2028, according to research firm SemiAnalysis.
Shares of Galaxy Digital Inc. lost nearly 17 per cent, Hut 8 Corp. dropped 23 per cent, and MARA Holdings Inc. declined about 4 per cent. Cipher Digital, Core Scientific, and IREN have all plummeted at least 10 per cent.
Matthew Hougan, chief investment officer at Bitwise Asset Management, said any slowdown in buildouts could put stress on AI-linked neoclouds as financing costs mount while revenues are pushed back. However, Adam McCarthy, head of research at LO:TECH, suggested the selloff might be an overreaction, noting that existing infrastructure could become more valuable if the Democratic administration is stricter on AI buildouts.