- AI stocks dramatically outperformed crypto over the last year, with Micron up 1,000%.
- Strategy is facing a record $10.8B unrealized loss as Bitcoin continues to drop massively.
- Spot Bitcoin ETFs recorded $4.33 billion in outflows over 13 consecutive trading days.
The gap between AI stocks and crypto has widened sharply in 2026, and investors are panicking as crypto bleeds. Data shared by The Kobeissi Letter shows that investors who allocated capital to major AI-linked semiconductor companies significantly outperformed those who stayed concentrated in Bitcoin and crypto-related equities.
The chart below shows the divergence clearly. Over the last year, Micron surged roughly 1,000%, Intel gained 471%, and AMD climbed 373%. Meanwhile, Bitcoin fell 38% over the same period.
Even more, Strategy, formerly MicroStrategy, dropped 66%, despite being the public company most closely associated with Bitcoin accumulation. For investors who chose AI over crypto, the difference in returns has been massive.
Strategy’s Bitcoin Bet Faces Pressure
The underperformance has become increasingly visible in Strategy’s financials. According to The Kobeissi Letter, the company is now sitting on its largest unrealized loss ever, reaching approximately $10.8 billion.
After six years of aggressively accumulating Bitcoin, Strategy’s position is reportedly down 17%. Over the same period, the S&P 500 gained 116%.
Kobeissi also noted that since Strategy sold 32 BTC at $77,135 per coin, the value of its Bitcoin holdings has declined by roughly $11.8 billion. The company’s stock has fallen 77% from its all-time high.
At the same time, concerns have emerged around Strategy’s ability to continue supporting Bitcoin demand at previous levels. The company has accumulated more than 126,000 BTC since March and raised billions through preferred stock offerings. However, recent debt buybacks reduced its cash position to about $900 million.
While there is currently no indication that Strategy faces a forced Bitcoin liquidation, investors are increasingly focused on whether the company can continue acting as one of Bitcoin’s largest buyers.
Related: Bitcoin Faces Momentum Challenge as Capital Shifts Toward AI and IPO Trades
ETF Outflows Add More Selling Pressure
Institutional money has also been moving away from Bitcoin. According to Galaxy Research, spot Bitcoin ETFs recorded 13 consecutive trading days of net outflows between May 15 and June 3.
The funds lost a combined $4.33 billion, equivalent to roughly 59,351 BTC. Galaxy noted that rolling 7-day, 10-day, and 20-day outflow windows all reached record highs during the period.
The selling pressure arrived as Bitcoin retested the $61,000-$66,000 range after a 21% correction in just ten days. However, there are signs that some institutional demand remains intact.
BlackRock’s Bitcoin ETF recently returned to net buying, purchasing approximately $47.3 million worth of BTC after the prolonged selling streak.
AI Is Winning the Capital Rotation
Michael Saylor argues that Bitcoin’s weakness is being driven by capital rotation rather than a breakdown in the long-term Bitcoin thesis. According to Saylor, roughly $400 billion has flowed into AI infrastructure over the last six months.
The chart from Kobeissi shows that investors are currently rewarding businesses tied directly to AI growth because they generate measurable revenue, profits, and earnings growth.
Companies supplying chips, servers, memory, and data-center infrastructure are benefiting from a surge in AI spending across governments, enterprises, and technology firms.
Bitcoin offers a different investment case. Its value depends on adoption, scarcity, liquidity, and investor demand. According to market data highlighted by The Kobeissi Letter, more than $2 trillion in crypto market value has been erased since October 2025.
The sector has declined roughly 48% during that period.
Related: Bitcoin Price Prediction: Can BTC Recover Above $66K Amid Renewed Market Activity?
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