Bitcoin mining stocks surged in double digits on Wednesday, following a bold promise by United States presidential candidate Donald Trump to strengthen mining operations within the country. On June 12, Trump declared his vision to have “all the remaining Bitcoin to be MADE IN THE USA!!!” and emphasized that this move would help the nation become “ENERGY DOMINANT.” This announcement came shortly after he hosted a meeting with several top industry executives, signaling strong support for the sector if he is elected president in November.
Trump’s pledge to back the Bitcoin mining industry resonated positively with stock traders. The impact was immediately evident, with shares of prominent mining companies experiencing significant gains. Among the top ten largest Bitcoin miners by market cap, TeraWulf (WULF) and Hut 8 Mining (HUT) emerged as the biggest winners, posting increases of 10.5% and 10.07%, respectively, on June 12, according to Google Finance.
Bitcoin Mining Stocks Respond to Trump’s Promise
Other notable movers included Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR), which saw their shares rise by 9.87%, 9.72%, and 8.94%, respectively. Industry stalwarts CleanSpark (CLSK) and Riot Platforms (RIOT) also enjoyed gains, with their stocks rallying 8.15% and 6.5%. However, Marathon Digital (MARA), the largest Bitcoin miner by market cap, saw a more modest increase of 2.4% on the day.
Interestingly, China-based Bitcoin miner Canaan (CAN) was the only company among the top 20 by market cap to record a decline in share price on June 12. Overall, the day’s strong performance lifted the Bitcoin mining industry’s market cap to $26.4 billion, according to Companies Market Cap.
The rally in mining stocks was particularly striking given that Bitcoin itself only managed a modest rise of 1.4% to $68,365 over the same 24-hour period. This disparity underscores the market’s enthusiasm for Trump’s pro-mining stance and its potential implications for the sector.
CleanSpark and TeraWulf have been standout performers in 2024, with their shares up 58.55% and 66.96% year-to-date, respectively. However, not all Bitcoin miners have shared in this success. Marathon Digital has seen its share price decline by 11.43% year-to-date, while Riot Platforms has tumbled nearly 31% in 2024.
Trump’s meeting with Bitcoin mining executives on June 11 at his Mar-a-Lago resort highlighted his commitment to the industry. 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. All executives reported positive interactions with Trump during the event.
During the meeting, Trump and the industry leaders discussed how Bitcoin mining could strengthen the electrical grid and create more jobs. This focus on infrastructure and employment aligns with Trump’s broader economic vision and adds a new dimension to the political discourse surrounding cryptocurrency mining.
The market’s reaction to Trump’s announcement and subsequent meeting suggests that investors are optimistic about the potential regulatory and economic support for the Bitcoin mining industry under a Trump presidency. This optimism is reflected in the significant uptick in mining stocks, despite the relatively modest rise in Bitcoin’s price.
In conclusion, Trump’s promise to bolster Bitcoin mining operations in the United States has sparked a notable surge in mining stocks, highlighting the market’s positive reception to his pro-mining policies. As the presidential election approaches, the cryptocurrency industry will likely continue to watch Trump’s statements and actions closely, with potential implications for the sector’s future growth and regulatory environment.
