Bitcoin mining stocks saw a significant surge on Wednesday, rising by double digits following a statement from U.S. presidential candidate Donald Trump. Trump pledged to enhance Bitcoin mining operations in the country, sparking optimism among industry stakeholders and investors.
In a post on June 12, Trump declared his intention to make the U.S. a dominant force in Bitcoin mining. He emphasized the need for all remaining Bitcoin to be produced domestically, linking this ambition to his broader goal of establishing the U.S. as an “ENERGY DOMINANT” nation. This statement came shortly after he convened a meeting with key executives from the Bitcoin mining sector.
Trump’s message resonated with many, as he assured industry leaders of his commitment to supporting their operations if he wins the presidential election in November. His stance promises to bring significant attention and potentially favorable policies to the Bitcoin mining industry.
Stock Market Reaction to Trump’s Comments
The reaction from the stock market was immediate and pronounced. Bitcoin mining stocks soared as investors responded positively to Trump’s promises. Among the top performers on June 12 were TeraWulf (WULF) and Hut 8 Mining (HUT), which saw their stock prices increase by 10.5% and 10.07%, respectively. This strong performance is reflected in the table below:
| Company | Ticker | Stock Increase (%) | Market Cap Rank |
|---|---|---|---|
| TeraWulf | WULF | 10.5% | Top 10 |
| Hut 8 Mining | HUT | 10.07% | Top 10 |
| Core Scientific | CORZ | 9.87% | Top 10 |
| Iris Energy | IREN | 9.72% | Top 10 |
| Cipher Mining | CIFR | 8.94% | Top 10 |
| CleanSpark | CLSK | 8.15% | Top 10 |
| Riot Platforms | RIOT | 6.5% | Top 10 |
| Marathon Digital | MARA | 2.4% | Largest by Market Cap |
Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR) also experienced significant gains, each rising by around 9%. Even the industry giants, CleanSpark (CLSK) and Riot Platforms (RIOT), saw their shares rally by 8.15% and 6.5%, respectively. However, Marathon Digital (MARA), the largest Bitcoin miner by market cap, recorded a more modest increase of 2.4%.
Interestingly, China-based Bitcoin miner Canaan (CAN) was the only miner among the top 20 by market cap to see a decline in its share price on June 12. This could reflect differing investor sentiments towards companies operating in more restrictive regulatory environments compared to their U.S. counterparts.
Bitcoin Mining Industry’s Market Cap Growth
The collective surge in Bitcoin mining stocks propelled the industry’s market capitalization to $26.4 billion, as reported by Companies Market Cap. This strong market performance on a day when Bitcoin itself only rose by 1.4% to $68,365 underscores the growing investor confidence in the mining sector, particularly within the U.S.
Several Bitcoin mining companies have enjoyed robust performances throughout 2024. CleanSpark and TeraWulf have been standout performers, with their shares up by 58.55% and 66.96% year-to-date, respectively. These gains highlight the resilience and growth potential of companies well-positioned within the U.S. market.
However, not all miners have shared in this positive momentum. Marathon Digital, despite its leading market cap position, has seen its share price decline by 11.43% year-to-date. Riot Platforms has experienced an even steeper drop, tumbling nearly 31% in 2024. These figures indicate varying investor confidence and performance outcomes across the sector.
Trump’s Meeting with Bitcoin Mining Executives
The meeting at Trump’s Mar-a-Lago resort on June 11 brought together key figures in the Bitcoin mining industry to discuss the future of the sector under potential Trump administration policies. Attendees included Riot Platforms CEO Jason Les, the firm’s public policy head Brian Morgenstern, CleanSpark executive chairman Matthew Schultz, and Amanda Fabiano, a board director at TeraWulf.
These executives reported positive interactions with Trump, who voiced strong support for Bitcoin mining’s potential to bolster the U.S. electrical grid and create jobs. This alignment with industry goals was well-received, further fueling the stock market rally.
| Company | Ticker | Year-to-Date Change (%) |
|---|---|---|
| CleanSpark | CLSK | +58.55% |
| TeraWulf | WULF | +66.96% |
| Marathon Digital | MARA | -11.43% |
| Riot Platforms | RIOT | -31% |
Donald Trump’s promise to support Bitcoin mining in the U.S. has injected a wave of optimism into the industry. The sharp rise in Bitcoin mining stocks reflects investor confidence in the potential benefits of favorable policies for domestic mining operations. As the industry continues to evolve, the commitments and regulatory environment set by potential future administrations will play a critical role in shaping its trajectory. The recent rally underscores the significant impact that political endorsements and policy promises can have on market dynamics.
Featured image credit: Freepik