Under Trump's support, mining company stock prices soar, facing both halving and financing challenges: Are mining companies迎来新机遇还是应对挑战?

Bitcoin mining companies saw a general increase of about 10% in stock prices on Wednesday, with the top ten companies performing particularly well. This surge was primarily driven by the commitment of U.S. presidential candidate Donald Trump, who stated that he would strengthen the U.S. cryptocurrency mining industry and further consolidate the country's leading position in this field.
According to Google Finance data, TeraWulf (WULF) and Hut 8 Mining (HUT) saw their stock prices rise by 10.5% and 10.07% respectively on June 12. Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR) increased by 9.87%, 9.72%, and 8.94% respectively. CleanSpark (CLSK) and Riot Platforms (RIOT) rose by 8.15% and 6.5%, while the largest Bitcoin mining company, Marathon Digital (MARA), also saw a 2.4% increase.
Before Trump's announcement of support, the stock prices of these mining companies were relatively stable, with the market concerned about future uncertainties. However, Trump stated on Truth Social that Bitcoin mining could be the last line of defense against Central Bank Digital Currencies (CBDCs) and called for all remaining Bitcoins to be manufactured in the U.S. He also promised to strongly support the Bitcoin mining industry if elected president.
Trump's remarks significantly boosted market confidence, leading to a collective rise in mining company stock prices. In the future, whether these companies can maintain strong momentum with policy support will be a focal point for the market.

Trump Meets Leading Bitcoin Miners: Promises to Keep Mining in the U.S., Stock Prices Surge

Behind the rise in Bitcoin mining company stock prices is former U.S. President Donald Trump's public support for the Bitcoin mining industry. On June 12, Matthew Schultz, Executive Chairman of Bitcoin mining company CleanSpark, revealed that several senior executives from Bitcoin mining companies met with Trump at Mar-a-Lago on Tuesday evening. Attendees included industry representatives such as Riot Platforms CEO Jason Les.
Schultz stated that Trump clearly expressed his love and understanding of cryptocurrencies at the meeting and pointed out that Bitcoin mining companies help stabilize energy supply for the grid. Trump also promised to advocate for mining companies if he returns to the White House. This statement undoubtedly injected a boost of confidence into the mining companies and further enhanced market sentiment.
The meeting, dubbed the "Presidential Roundtable on Bitcoin Mining," included well-known companies in the industry such as CleanSpark and Riot Platforms, as well as Marathon Digital. After the meeting, several attendees shared photos with Trump on social media and expressed high praise for the outcomes. CleanSpark's Matthew Schultz wrote on X platform: "I just met with someone who really loves Bitcoin, and he also appreciated our work in Georgia, Mississippi, and Wyoming." Jason Les of Riot Platforms also stated: "I had a great discussion with former President Trump about Bitcoin and America's energy advantages."
This meeting came at a time when Bitcoin miners faced strong opposition due to climate change and their impact on local grids. Previously, the Democrats had been pushing for scrutiny of energy consumption and carbon emissions from Bitcoin miners and had taken a critical stance. However, the cryptocurrency industry has been actively working to influence U.S. political decisions by donating to candidates who support digital assets. Trump publicly showcased his shift in attitude towards the cryptocurrency industry and regulation at the NFT gala in May, stating that his campaign team would accept cryptocurrency donations.
Trump's public support not only boosted mining company stock prices but also provided policy assurance for the future development of the Bitcoin mining industry. Next, we will analyze the recent performance and future trends of these mining companies in detail.

Overview of the Top Eight Mining Companies Supported by Trump: Selecting the Best

The significant rise in Bitcoin mining company stock prices stems from former U.S. President Donald Trump's public support for the Bitcoin mining industry. On June 12, Trump stated on Truth Social that Bitcoin mining could be the last line of defense against Central Bank Digital Currencies (CBDCs) and expressed a desire for all remaining Bitcoins to be manufactured in the U.S. He also promised to strongly support the Bitcoin mining industry if elected president. Here are eight Bitcoin mining companies worth noting in terms of market capitalization and their recent performance:
TeraWulf Inc.
TeraWulf (WULF) is the Bitcoin mining company with the largest stock price increase, rising by 10.5% on June 12. This digital asset technology company focuses on developing and operating environmentally friendly Bitcoin mining facilities within the U.S. TeraWulf's mining facilities are powered by clean, affordable, and reliable energy sources. The company has partnered with Cumulus Coin to launch the first 100% nuclear-powered Bitcoin mining platform in the U.S., with its 200MW Nautilus facility connected to the Susquehanna nuclear power plant in Pennsylvania.
Hut 8 Mining
Following closely is Hut 8 Mining (HUT), which saw its stock price rise by 10.07%. Hut 8 is one of North America's largest digital asset miners focused on innovation. The company and its subsidiaries primarily engage in the mining of digital assets, using specialized equipment to solve computational problems, validate transactions on different blockchains, and receive Bitcoin. Hut 8 operates cloud and hosting data center facilities in Canada, catering to enterprise clients seeking computational services. In August 2023, BlackRock invested $384 million in Hut 8 to explore the potential impact of digital currencies on the global economy.
Core Scientific
Core Scientific (CORZ) saw its stock price increase by 9.87%. As one of North America's largest blockchain data center providers and digital asset miners, Core Scientific has been operating blockchain data centers in North America since 2017, engaging in digital asset hosting mining and self-mining. The company has completed multiple large-scale financings and has accumulated extensive experience in deploying, powering, and maintaining mining machines, maximizing Bitcoin output and investment returns.
Iris Energy
Iris Energy (IREN) saw its stock price rise by 9.72%. The company focuses on sustainable Bitcoin mining and operates next-generation data centers powered by 100% renewable energy. Iris Energy utilizes surplus renewable energy to support the energy grid while building profitable businesses in emerging sectors. The company's founders, Dan and Will, have extensive experience in renewable energy and traditional mining, applying this expertise to the Bitcoin mining business.

Cipher Mining

Cipher Mining (CIFR) saw its stock price increase by 8.94%. This is an industrial-scale Bitcoin mining company dedicated to expanding and strengthening the critical infrastructure of the U.S. Bitcoin network. Cipher Mining has an experienced management team from technology, fintech, energy, and finance sectors. The company is committed to providing a solid foundation for the Bitcoin network to support its future development and applications.
CleanSpark
CleanSpark (CLSK) saw its stock price rise by 8.15%. Founded in 1987, this Bitcoin mining company owns and operates five independent data centers with a total development capacity of 230 megawatts. CleanSpark is dedicated to developing infrastructure in low-carbon energy communities, utilizing wind, solar, nuclear, and hydroelectric power. The company has also expanded its operations by acquiring three Bitcoin mining facilities in Mississippi.
Riot Platforms
Riot Platforms (RIOT) saw its stock price increase by 6.5%. Riot is a leading Bitcoin mining company focused on maximizing its Bitcoin output and investment returns. The company operates several large mining facilities in North America and collaborates with major hardware suppliers to ensure efficient and stable operations.
Marathon Digital
Marathon Digital (MARA) saw its stock price rise by 2.4%. As the largest Bitcoin mining company by market capitalization, Marathon Digital primarily engages in digital asset mining and is committed to building efficient and sustainable mining facilities. Although this increase is relatively small, Marathon Digital's influence in the industry cannot be underestimated.
Through a detailed overview of these leading mining companies, it is evident that Trump's support has significantly boosted market confidence.

Trump’s Support and the Halving Challenge: Are Mining Companies Facing New Opportunities or a Shake-Up?

Bitcoin mining companies are facing dual challenges of financing and halving in the second quarter of 2024. Despite former President Donald Trump's support injecting a boost of confidence into the market and a general rise in mining company stock prices, uncertainties still loom for the future.

According to analysis by BlocksBridge Consulting, equity financing activities for mining companies are expected to decrease significantly in the second quarter. As of mid-May, investments totaled less than $500 million, far below previous quarters. Although Marathon Digital, CleanSpark, and Riot Platforms raised substantial funds in the previous quarter, the slowdown in financing activities may affect their ability to cope with the upcoming halving event.
The Bitcoin halving will reduce mining rewards by half, increase mining difficulty, and directly impact mining company revenues. Nevertheless, the top five Bitcoin mining companies did not sell large amounts of Bitcoin in the first quarter but continued to hold. Global Bitcoin miners hold over 700,000 Bitcoins, accounting for 3.4% of the total supply.
In the first quarter of 2024, Riot Platforms achieved a record net income of $211.8 million, despite rising mining costs and declining output. Marathon Digital's revenue increased by 223% year-on-year, but still fell short of expectations. These financial performances indicate the proactive preparations of mining companies ahead of the halving and the uncertainties in the market.
The Bitcoin halving is a stress test for mining companies. Unless Bitcoin prices remain above $40,000, most miners will face profitability challenges. Mining companies need to control costs and seek additional revenue models to cope with future uncertainties.
While Trump's support has boosted market confidence, the challenges posed by the halving will still test the financial resilience and adaptability of mining companies. Whether these companies can establish themselves in a new round of market reshuffling will depend on their strategies and execution in addressing these challenges.