- June 14, 2024
- Posted by: [email protected]
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Bitcoin mining stocks experienced significant gains on Wednesday following a pledge by United States presidential candidate Donald Trump to bolster domestic mining operations. On June 12, Trump articulated his vision for the US to dominate the energy sector by producing all remaining Bitcoin within the country. This statement came after a meeting between Trump and top executives from the Bitcoin industry, where he reportedly assured them of his support if elected president in November.
The optimism generated by Trump’s commitment to the industry translated into notable gains for Bitcoin mining stocks. Among the ten largest Bitcoin miners by market capitalization, TeraWulf (WULF) and Hut 8 Mining (HUT) emerged as top performers, with stock prices rising by 10.5% and 10.07%, respectively, on June 12, according to Google Finance. Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR) also saw substantial increases, registering gains of 9.87%, 9.72%, and 8.94%, respectively. Established industry players like CleanSpark (CLSK) and Riot Platforms (RIOT) experienced rallies of 8.15% and 6.5%, respectively.
However, Marathon Digital (MARA), the largest Bitcoin miner by market capitalization, saw a more modest increase of 2.4% on the same day. In contrast, China-based Bitcoin miner Canaan (CAN) was the only one among the top 20 by market capitalization to record a decline in share price on June 12. The overall strong performance of Bitcoin mining stocks contributed to a market capitalization of $26.4 billion for the Bitcoin mining industry, as reported by Companies Market Cap.
These surges in mining stock prices coincided with a relatively modest 1.4% increase in the price of Bitcoin, which reached $68,365 over 24 hours. Notably, CleanSpark and TeraWulf have been among the best-performing stocks in 2024, with year-to-date gains of 58.55% and 66.96%, respectively. However, others, like Marathon Digital and Riot Platforms, have experienced declines of 11.43% and nearly 31%, respectively.
A Harris Poll survey revealed that one in three US voters considers a candidate’s stance on cryptocurrencies before voting. Another survey by crypto venture capital firm Paradigm indicated strong support for Trump within the crypto community, with 48% of crypto owners planning to vote for him compared to 39% for current President Joe Biden. Additionally, a Coinbase report suggested that California crypto owners are expected to significantly influence the 2024 elections.
Trump’s vocal support for cryptocurrency is well documented. On May 26, he reiterated his belief that the United States must lead the crypto sector, stating, “Our country must be the leader in the field, there is no second place,” on Truth Social, his social media platform. Trump’s commitment to making the US a hub for Bitcoin mining could lead to policy changes that benefit the industry, further boosting investor confidence and market performance.
The surge in Bitcoin mining stocks also reflects broader market sentiments and the increasing acceptance of cryptocurrencies as a significant economic and political force. The potential for regulatory support under a Trump administration has excited many within the industry, who view it as an opportunity for growth and stability. As Bitcoin continues to gain mainstream traction, the support of high-profile political figures like Trump can have substantial impacts on market dynamics and investor behavior.
The recent surge in Bitcoin mining stocks following Trump’s pledge underscores the strong correlation between political support and market performance in the crypto sector. As the 2024 presidential election approaches, the positions of candidates on cryptocurrency will likely play a crucial role in shaping market trends and investor strategies. With increasing voter interest in cryptocurrency policies, the industry could see significant developments based on the outcome of the election and subsequent regulatory actions.
