Bitcoin mining stocks surged after U.S. presidential candidate Donald Trump pledged to bolster mining operations and support the sector if elected.
Bitcoin (BTC) mining stocks experienced significant gains on June 12, following U.S. presidential candidate Donald Trump's commitment to enhance mining operations in the country. Trump's announcement, which included a promise to make the United States "energy dominant" by ensuring all remaining Bitcoin is "MADE IN THE USA!!!", sparked a strong positive reaction among Bitcoin mining stock traders.
Trump's Industry Promises
Trump's pro-mining stance was revealed in a post on June 12, shortly after a meeting with top executives from the Bitcoin mining industry. He assured the executives of his support for the sector if he were to win the presidential election in November. This promise of political backing appeared to invigorate the market, leading to a noticeable surge in mining stocks.
The biggest winners on June 12 were TeraWulf, Hut 8 Mining, and Core Scientific. TeraWulf (WULF) saw its stock rise by 10.5%, and Hut 8 Mining (HUT) followed closely with a 10.07% increase, according to Google Finance. Core Scientific (CORZ) also performed strongly, with a 9.87% rise.
Other notable gainers included Iris Energy (IREN) and Cipher Mining (CIFR), which saw their stocks increase by 9.72% and 8.94%, respectively. CleanSpark (CLSK) and Riot Platforms (RIOT) also enjoyed significant rallies, with their shares rising by 8.15% and 6.5%. However, Marathon Digital (MARA), the largest Bitcoin miner by market cap, saw a modest increase of only 2.4%.
Interestingly, the only Bitcoin miner among the top 20 by market cap to experience a decline was China-based Canaan (CAN).
The positive market movements resulted in the Bitcoin mining industry’s market cap reaching $26.4 billion, as reported by Companies Market Cap. This rally occurred even though Bitcoin itself only saw a modest 1.4% increase in its price, reaching $68,365 over the last 24 hours.
CleanSpark and TeraWulf have been standout performers in 2024, with their shares up 58.55% and 66.96% year-to-date. However, not all Bitcoin miners have shared in this success. Marathon Digital has struggled, with its share price down 11.43% year-to-date, and Riot Platforms has seen a significant decline of nearly 31% in 2024.
The surge in mining stocks was partly fueled by the meeting held at Trump's Mar-a-Lago resort on June 11, where discussions centered around how Bitcoin mining could bolster the electrical grid and create jobs. Key industry figures in attendance included Riot Platforms CEO Jason Les, CleanSpark executive chairman Matthew Schultz, and Amanda Fabiano, a board director at TeraWulf. The executives reported positive interactions with Trump, reinforcing confidence in his potential support for the industry.
Trump’s commitment to the Bitcoin mining industry highlights a potential shift in U.S. policy towards cryptocurrencies and blockchain technology. If elected, his support could lead to significant developments in the sector, potentially making the U.S. a global leader in Bitcoin mining. This prospect is likely to continue driving investor interest and market activity in the coming months.
In conclusion, Trump's promises have catalyzed a notable rise in Bitcoin mining stocks, reflecting market optimism about potential political support. As the presidential race progresses, the future of Bitcoin mining in the U.S. will likely remain a focal point for both investors and industry stakeholders.
(BRAYDEN LINDREA, COINTELEGRAPH, 2024)