Bitcoin mining stocks experienced a significant surge on Wednesday following a statement made by United States presidential candidate Donald Trump, who expressed his intention to boost mining operations in the country. Trump declared his desire for all remaining Bitcoin to be produced in the USA, emphasizing that this move would contribute to making the country energy dominant. This announcement came after a meeting with top industry executives, where Trump assured his support for the sector if elected as president in November.
Investors in Bitcoin mining stocks responded positively to Trump’s promises. TeraWulf (WULF) and Hut 8 Mining (HUT) saw the most significant increases among the top 10 largest Bitcoin miners by market cap, with gains of 10.5% and 10.07% respectively on June 12. Other notable movers included Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR), which saw their share prices rise by 9.87%, 9.72%, and 8.94% respectively.
Despite the overall positive trend, Marathon Digital (MARA), the largest Bitcoin miner by market cap, only experienced a modest 2.4% increase on the same day. In contrast, China-based Bitcoin miner Canaan (CAN) was the only top 20 miner to see a decline in share price.
The collective market cap of the Bitcoin mining industry reached $26.4 billion on the day of the stock price rallies. These gains coincided with a 1.4% increase in Bitcoin’s price to $68,365 over the previous 24 hours.
Looking ahead, CleanSpark and TeraWulf have been standout performers in 2024, with gains of 58.55% and 66.96% year-to-date. However, not all miners have fared as well, with Marathon Digital down 11.43% and Riot Platforms declining nearly 31% in the same period.
Trump and industry executives discussed the potential for Bitcoin mining to enhance the electrical grid and create job opportunities during a meeting at his Mar-a-Lago resort. Attendees included Riot Platforms CEO Jason Les, CleanSpark executive chairman Matthew Schultz, and TeraWulf board director Amanda Fabiano, all of whom reported positive interactions with Trump.
In conclusion, the positive response from investors to Trump’s industry promises underscores the potential for Bitcoin mining to play a significant role in the economic landscape.