Bitcoin mining stocks experienced significant gains on Wednesday following a statement from US presidential candidate Donald Trump pledging to enhance mining activities in the country. Trump expressed his desire for all remaining Bitcoin to be produced in the USA, emphasizing the potential for energy dominance. This announcement came after a meeting with industry leaders, where Trump assured his support for the sector if elected.
Investors in Bitcoin mining stocks reacted positively to Trump’s industry commitments. TeraWulf (WULF) and Hut 8 Mining (HUT) saw the most substantial increases, rising by 10.5% and 10.07% respectively on June 12. Other top performers included Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR), with gains ranging from 8.94% to 9.87%. CleanSpark (CLSK) and Riot Platforms (RIOT) also experienced notable increases of 8.15% and 6.5%, while Marathon Digital (MARA) saw a more modest rise of 2.4%.
However, China-based Bitcoin miner Canaan (CAN) was the sole miner among the top 20 by market cap to observe a decline in share price on June 12. Despite this, the overall market cap of the Bitcoin mining industry surged to $26.4 billion. These stock price surges occurred alongside a 1.4% increase in Bitcoin’s price to $68,365 over the previous 24 hours.
CleanSpark and TeraWulf have been standout performers in 2024, with year-to-date gains of 58.55% and 66.96% respectively. On the other hand, Marathon Digital has experienced a decline of 11.43% year-to-date, while Riot Platforms has fallen by nearly 31% in 2024.
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. These industry leaders reported positive interactions with Trump following the meeting.
In conclusion, the support for Bitcoin mining expressed by Trump and industry executives has sparked optimism within the sector, leading to significant stock price increases.