Bitcoin mining stocks surged by double digits on Wednesday following United States presidential candidate Donald Trump’s pledge to enhance mining activities in the country. Trump expressed his desire for all remaining Bitcoin to be produced in the USA, emphasizing that this would contribute to making the country energy dominant. This announcement, made on June 12 after a meeting with industry leaders, garnered positive reactions from Bitcoin mining stock traders.
TeraWulf (WULF) and Hut 8 Mining (HUT) experienced the largest gains among the top 10 Bitcoin miners by market cap, with increases of 10.5% and 10.07% respectively on June 12. Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR) also saw significant rises of 9.87%, 9.72%, and 8.94% respectively. Furthermore, industry giants CleanSpark (CLSK) and Riot Platforms (RIOT) recorded gains of 8.15% and 6.5%, while Marathon Digital (MARA), the largest Bitcoin miner by market cap, only saw a modest increase of 2.4%.
Interestingly, China-based Bitcoin miner Canaan (CAN) was the only miner in the top 20 by market cap to experience a decline in share price on June 12. The collective increase in Bitcoin mining stocks bolstered the industry’s market cap to $26.4 billion, according to Companies Market Cap data.
Despite Bitcoin only rising by 1.4% to $68,365 within the same 24-hour period, the mining stock price rallies were significant. CleanSpark and TeraWulf have been standout performers in 2024, with year-to-date gains of 58.55% and 66.96% respectively. However, Marathon Digital has seen a decline of 11.43% and Riot Platforms has plummeted by almost 31% in the same time frame.
During a meeting at his Mar-a-Lago resort on June 11, Trump and industry executives discussed the potential for Bitcoin mining to strengthen the electrical grid and create more job opportunities. Attendees included Riot Platforms CEO Jason Les, public policy head Brian Morgenstern, CleanSpark executive chairman Matthew Schultz, and TeraWulf board director Amanda Fabiano. All participants reported positive interactions with Trump during the meeting.
In conclusion, the positive momentum in Bitcoin mining stocks following Trump’s industry promises reflects a hopeful outlook for the sector’s growth and development.