## AI IPOs Are Draining Billions from Crypto – Here's Why It Matters

Artificial intelligence (AI) has not only been dominating headlines, but has also been **soaking up capital** that might otherwise have flowed into other parts of the financial market, including cryptocurrencies.

This trend continues as **SK Hynix (000660)** gears for its blockbuster IPO on July 10. The South Korean memory chip giant is raising about **$24.5 billion to $28 billion** through the sale of 177.9 million American depositary receipts, a deal that has reportedly been **more than seven times oversubscribed**, according to Bloomberg.

The offering has attracted global long-only funds, sovereign wealth funds and specialist technology investors, with firms including Baillie Gifford, Coatue Management and Situational Awareness Partners indicating interest in buying up to **$7 billion worth of shares**. The proceeds will fund new manufacturing capacity and advanced chipmaking equipment to meet booming AI demand.

China is following with a semiconductor mega listing of its own. **Changxin Memory Technologies (CXMT)**, the country's largest DRAM maker, will begin book building on July 15 for a **29.5 billion yuan ($4.3 billion) Shanghai IPO**, with subscriptions opening a day later, according to Reuters.

The U.S.-blocked company plans to use the proceeds to upgrade production lines and technology after posting explosive growth, including first-quarter revenue of 50.8 billion yuan, **up 700% year-on-year**. Reuters estimates CXMT held around 7.7% of the global DRAM market last year.

These deals follow **SpaceX (SPCX)** and **Cerebras (CBRS)**, two AI-related listings that have fueled enthusiasm across semiconductor and memory stocks. Together they reinforce a broader theme: investors are allocating fresh capital to companies building the infrastructure behind artificial intelligence rather than to crypto assets.

**Bitcoin** has fallen roughly **50%** from its October all-time high to around **$63,000**, as investors have increasingly favored AI infrastructure plays over digital assets.

The pipeline is far from empty. **OpenAI** and Anthropic have both been discussed as companies that could eventually command valuations approaching **$1 trillion**. While market expectations had pointed to IPOs as early as this year, however, growing investor unease over AI valuations and a cooling in semiconductor shares could delay those listings until 2027. Even so, another wave of AI mega offerings would likely continue drawing liquidity away from crypto.

A wave of blockbuster AI listings is drawing billions of dollars from global investors, reinforcing a rotation away from crypto.

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