Bitcoin Mining Stocks Surge After Trump's Pledge to Support US Miners
Bitcoin mining stocks saw a significant rise on June 12, following former President Donald Trump's promise to bolster mining operations in the United States. This announcement came after a meeting with top industry executives, where Trump emphasized his intention to make the U.S. a leader in Bitcoin production and energy dominance.
Market Reaction
Bitcoin (BTC) mining stocks soared by double digits on Wednesday, June 12, in response to Trump's declaration. Key players in the industry experienced notable increases:
TeraWulf (WULF): Shares increased by 10.5%.
Hut 8 Mining (HUT): Shares rose by 10.07%.
Core Scientific (CORZ): Shares grew by 9.87%.
Iris Energy (IREN): Shares went up by 9.72%.
Cipher Mining (CIFR): Shares increased by 8.94%.
Other significant performers included CleanSpark (CLSK) and Riot Platforms (RIOT), which saw increases of 8.15% and 6.5% respectively. However, the largest Bitcoin miner by market cap, Marathon Digital (MARA), saw a more modest increase of 2.4%.
Industry Impact
The overall market capitalization of the Bitcoin mining industry surged to $26.4 billion, as reported by Companies Market Cap. This rally in mining stocks occurred on a day when Bitcoin itself saw a modest increase of 1.4%, reaching $68,365.
Year-to-Date Performance
CleanSpark and TeraWulf have been standout performers in 2024, with year-to-date gains of 58.55% and 66.96% respectively. In contrast, Marathon Digital and Riot Platforms have faced challenges, with their shares down by 11.43% and nearly 31% respectively.
Industry Executives' Response
The meeting at Trump's Mar-a-Lago resort on June 11 included prominent industry figures such as Jason Les, CEO of Riot Platforms, Brian Morgenstern, Riot's head of public policy, Matthew Schultz, executive chairman of CleanSpark, and Amanda Fabiano, a board director at TeraWulf. These executives reported positive interactions with Trump, who highlighted Bitcoin mining's potential to strengthen the electrical grid and create jobs.
