Crypto Stocks Tumble as Power Generation Plays Surge—What’s Next for Digital Assets?

Markets flipped the script this week as crypto equities got hammered while old-school power generators rode a wave of institutional favor.

The great rotation no one saw coming

Traders dumped blockchain-adjacent stocks like yesterday's memecoins, shifting capital into boring-but-reliable utilities. Guess even degens need electricity for their mining rigs.

Short-term pain, long-term gain?

While paper hands panic, OGs know crypto's dips have always preceded explosive rallies. Meanwhile, those 'stable' power stocks? Just waiting for the next Enron-style accounting scandal.

One hedge fund manager quipped: 'We're either witnessing the smart money rotating—or the dumb money realizing they forgot to pay their electric bill.'

In its report Thursday, Nike confirmed that the biggest costs fell in the fourth quarter, easing concerns that Trump’s tariff increases on key production centers in Vietnam and China WOULD undercut its recovery. The company posted a disappointing quarter, with sales down 12 percent and net income plunging 86%. Along with that, profit margins shrank sharply. 

Despite those figures, the CEO of Nike, Elliott Hill, told investors that Nike has moved past its worst downturn and expects declines in its revenue and profits to slow in the coming quarters.

Hill said, “The results we’re reporting today in Q4 and in FY25 are not up to the Nike standard, but as we said 90 days ago, the work we’re doing to reposition the business through our ‘Win Now’ actions is having an impact.”

When Nike released its recent results after the market closed Thursday, its share price dipped initially. But after an hour-long conference call between analysts from Wall Street and Nike’s executives, the stock had climbed over 10 percent in after-hours trading.

Crypto stocks dipped while power generation stocks were up

Elsewhere in the market, shares of Pony.ai fell 4% following a report from The New York Times stating that Uber is considering funding to acquire Pony.ai’s US subsidiary. The former CEO and co-founder of Uber, CEOTravis Kalanick, is leading the potential acquisition. Uber’s own shares also slid, dropping about 3%.

Cryptocurrency-related stocks were lower, as investors appeared to lock in gains at the end of a strong month and adjust their portfolios for the quarter. Coinbase dropped over 5%, Robinhood fell roughly 2%. At the same time, eToro slid nearly 3%. 

Galaxy Digital slipped 1%, while Circle tumbled 11%. Bitcoin miners also saw modest losses. Both Riot Platforms and CleanSpark were down about 1%.

In contrast, US power generation companies rose after it was reported that TRUMP is planning to sign an executive order that would bolster the American electricity supply in support of the race against China in artificial intelligence development. Vistra and GE Vernova both gained about 4%, Vertiv rose by 3% while Oklo jumped 2%.

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