Bitcoin miners’ stocks dropped by as much as 23% on November 4 after Democrat Gina Hinojosa won the Texas gubernatorial election. Hinojosa campaigned on imposing a temporary moratorium on new commercial data center permits in a state projected to host nearly 30% of upcoming U.S. data center capacity by 2028.
Bitcoin mining operators that have pivoted to high-performance computing (HPC) and artificial intelligence infrastructure faced steep declines following the election results. Shares of Hut 8 (HUT) fell 23%, while Galaxy Digital (GLXY) slid nearly 17%, Bloomberg reported. Democrats also won control of both chambers of Congress, a result investors expect to slow data center construction nationally.
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Hut 8 and Galaxy Digital Led the Bitcoin Miner Selloff
Cipher Digital (Cipher), Core Scientific (CORZ) and IREN each fell at least 10% during Wednesday’s trading, and MARA Holdings declined about 4%, according to Bloomberg. Reuters reported similar moves, with Hut 8 down 23%, IREN 11% and Core Scientific 10%.
Many of these companies started as Bitcoin miners and have been converting their mining sites into data centers that rent computing power to AI companies. Those with major sites in Texas were among the hardest hit. “The mining stocks are getting hit by a shift in the outlook for data-center construction,” said Noelle Acheson, who writes the Crypto is Macro Now newsletter.
Why Gina Hinojosa’s Win Matters for Texas Data Centers
Hinojosa beat Republican Governor Greg Abbott, who conceded on election night, and is the first Democrat elected Texas governor in more than 30 years. During the campaign, she said she would impose a moratorium on all data center permits until the Legislature sets regulations, Texas Monthly reported. Texas accounts for nearly 30% of the US data center capacity due to come online in 2028, the largest share of any state, according to research firm SemiAnalysis.
While a governor can exercise unilateral authority over certain executive permitting processes, as Abbott demonstrated in September by temporarily halting select permits pending water and grid load audits, the long-term enforceability of a sweeping moratorium will depend on the balance of power and legislative alignment within the Texas Capitol, the Texas Tribune noted.
Analysts Split on the Long-Term Outlook for Miners
Some analysts see a financing risk. “Any slowdown in the buildout could put significant stress on AI-linked neoclouds, as financing costs will mount even as revenues are pushed back,” said Matthew Hougan, chief investment officer at Bitwise Asset Management. Neoclouds are newer cloud providers that rent out AI computing power. Brian Dobson of Clear Street said additional Texas regulations “would favor established incumbents with strong track records as good corporate citizens.”
Adam McCarthy, head of research at trading firm LO:TECH, called the selloff an overreaction. He said the miners “already have the infrastructure built,” and that if Democrats are stricter on new AI construction, “that could potentially make existing infra more valuable.”
What Comes Next for Texas Data Center Rules
The 90th Texas Legislature convenes its regular session on January 12, one week before Hinojosa is formally inaugurated on January 19. Until that transition, Abbott remains in office as governor.
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FAQs
1. Why did Bitcoin miner stocks fall?
Bitcoin miner stocks fell on November 4, 2026, after Democrat Gina Hinojosa, who campaigned on pausing new data center permits, won the Texas governor’s race and Democrats won control of Congress. Many former miners now build AI data centers, and Hut 8 fell 23% while Galaxy Digital dropped nearly 17%, Bloomberg reported.
2. What is Gina Hinojosa’s position on data centers?
Gina Hinojosa supports a moratorium on all new data center permits in Texas until the Texas Legislature sets regulations for the industry. She pledged the pause during her campaign for governor and blamed outgoing Governor Greg Abbott’s tax incentives for the rapid growth of data centers in the state. Texas has more than 300 data centers, with at least 248 more in development, according to Texas Monthly.
3. Why are Bitcoin miners building AI data centers?
Bitcoin miners are building AI data centers because their sites already have the large power connections and cooling systems that AI companies need to run their computing. Many former miners, including Hut 8, Core Scientific, IREN and Cipher Digital, now rent out power and space at those sites to AI and cloud companies.
4. Can Texas pause new data centers?
Texas can pause some new data center permits without passing a new law, but lasting statewide rules have to come from the Texas Legislature. Governor Greg Abbott paused certain new permits in September 2026 while state agencies audited data centers’ water and power use. Governor-elect Gina Hinojosa has said her broader moratorium would last until lawmakers set regulations.
