SK Hynix and CXMT IPOs could divert capital from crypto

SK Hynix plans a blockbuster IPO on July 10, aiming to raise 24.5 billion to 28 billion dollars through the sale of 177.9 million American depositary receipts, reportedly oversubscribed by more than seven times. The offering has attracted global long-only funds and sovereign wealth funds, with interest from firms like Baillie Gifford and Coatue Management for up to 7 billion dollars in shares. Proceeds will fund new manufacturing capacity to meet AI demand. Meanwhile, Changxin Memory Technologies (CXMT) will begin book building on July 15 for a 29.5 billion yuan (4.3 billion dollars) IPO in Shanghai, with subscriptions opening the next day. CXMT plans to upgrade production lines after reporting first-quarter revenue of 50.8 billion yuan, up 700% year-on-year. These IPOs follow AI-related listings from SpaceX and Cerebras, indicating a trend where investors prefer funding AI infrastructure over cryptocurrencies. Bitcoin has fallen about 50% from its October peak to around 63000 dollars as interest shifts. Future IPOs from companies like OpenAI and Anthropic could further draw liquidity away from crypto, although delays until 2027 are possible due to investor concerns over AI valuations.