The market cap of major cryptocurrency mining stocks has risen significantly over the past two weeks, with most companies experiencing double-digit percentage growth.
Marathon Digital (ticker MARA) led the way, jumping from $5.51 billion in market cap on July 8 to $7.56 billion over the weekend, a 37% increase in just five days. It dipped slightly the following week to $6.99 billion, but the company still managed to rally 27% over the 11 days ending July 19.
Riot Platforms (RIOT) followed a similar pattern, rising from $2.78 billion to $3.67 billion, and ending last week at $3.16 billion after a 32% weekly gain in the second week of July. Hut 8 Mining (HUT) saw more modest but significant growth, rising 11% from $1.58 billion two weeks ago to $1.76 billion this week.
Smaller players in the space have also benefited from the surge. BIT Digital (BTBT) closed the week at $470 million after growing from $456 million to $508 million two weeks ago, while Hive Digital (HIVE) rose from $392 million to $427.9 million over the same period. Canaan and BIT Mining have also benefited, but less so than the larger players.
While it is always difficult to attribute market movements to specific events, it is difficult to ignore the impact recent political developments have had on the cryptocurrency sector.
On July 13, former US President Donald Trump, the Republican candidate for the 2024 presidential election, survived an assassination attempt while campaigning, which left Trump with an injury to his right ear.
In recent months, President Trump has positioned himself as a cryptocurrency supporter, most recently saying he wants all bitcoin to be mined in the United States.
It is noteworthy that the largest increase in mining stocks occurred between July 8 and July 15, including the dates of the assassination attempt and the statement about the mine itself. Correlation does not imply causation, but the timing is certainly interesting.
The cryptocurrency market, especially the mining sector, may have reacted positively to Trump’s survival. His continued presence on the political landscape could mean continued support for crypto-friendly policies, including increased interest in domestic BTC mining.
This is an excerpt from The Block’s Data & Insights newsletter, where we dig into the numbers that make up the industry’s most thought-provoking trends.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.