Bitcoin mining companies saw their prices fall by up to 13% on Wednesday, during the worst round of selling on Wall Street since July.

TeraWulf, Core Scientific, Cipher Mining, and IREN all fell by more than 12%, as hotter inflation data hit the AI infrastructure companies.

U.S. stocks experienced the steepest sell-off since July on Wednesday, due to inflation data that exceeded expectations, which weighed on technology and AI infrastructure companies. Bitcoin mining firms were also among those affected.

The S&P 500 index fell 1.1%, recording its largest single-day decline since July 29; the Nasdaq Composite Index dropped 1.9%, also marking its largest single-day decline since July 23; the Dow Jones Industrial Average lost 0.1% on that day.

Among the large technology companies, those with significant declines include data center operator CoreWeave, which fell by 16%; AI infrastructure provider Nebius, which fell by 11%; and Oracle fell by 9%.

Among the 23 infrastructure stocks tracked by the AI Infrastructure Index of the PRISM data center and infrastructure, 21 stocks declined on Wednesday, with an average decline of 7.46%.

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This round of one-day declines also affected Bitcoin mining companies, some of which have expanded into the AI infrastructure sector. TeraWulf fell by 12.64% on that day, while Core Scientific, Cipher Mining, and IREN fell by 12.44%, 12.35%, and 12.2% respectively. Riot Platforms, Bitdeer Technologies, MARA, and CleanSpark also saw declines.

Higher interest rates may increase the borrowing costs for AI infrastructure companies, many of which rely heavily on debt to finance data center expansions.

Inflationary pressures have triggered a sell-off in technology and crypto assets.

In September, U.S. consumer prices rose 3.7% year-on-year, higher than economists' forecast of 3.6% and far exceeding the Federal Reserve's target of 2%. The reason is that the war in the Middle East has pushed up gasoline prices.

This inflation report also raised market expectations for a Fed interest rate hike in October. The implied probability once exceeded 50% on Wednesday, before then falling back.

However, the chairman of the San Francisco Federal Reserve, Mary Daly, told Reuters that although further interest rate hikes may be needed to curb inflation, there is no urgency to take action this month.

“I don’t think we necessarily have to make urgent decisions when information is limited. I believe we have the time we need,” said Daly.