Bitcoin mining companies are experiencing a surge in stock prices following former President Donald Trump’s pledge to support the industry. Trump, who is currently running for president in 2024, has shifted his stance on cryptocurrency, now positioning himself as a proponent of Bitcoin and crypto innovation in the US.
In a meeting with top mining executives at his Mar-a-Lago residence in Florida, Trump expressed his desire to make the US a leading Bitcoin mining jurisdiction. His statement on social media platform Truth Social emphasized the importance of producing Bitcoin domestically to enhance energy independence.
As a result of Trump’s endorsement, mining firms such as TeraWulf, Hut 8 Mining, Core Scientific, Iris Energy, and Cipher Mining saw significant increases in their stock prices. TeraWulf and Hut 8 Mining led the way with gains of over 10%, while other companies followed closely behind. Despite being the largest mining firm by market cap, Marathon Digital experienced more modest gains compared to its competitors.
The Bitcoin mining industry currently boasts a market cap of over $27 billion, with potential for further growth as Bitcoin continues to gain mainstream acceptance. Trump’s support for the industry is expected to not only create more job opportunities but also strengthen the US electrical grid.
With Trump’s pro-crypto stance gaining traction among various stakeholders, including Silicon Valley investors and retail users, the popularity of Bitcoin in the US is on the rise. Approximately one in four Americans now holds some amount of Bitcoin, indicating a growing interest in cryptocurrency as an asset class.
Overall, Trump’s alignment with the crypto industry’s development is poised to benefit businesses and attract more institutional and retail investors to the space. By positioning the US as a hub for Bitcoin mining and innovation, Trump aims to solidify the country’s position in the global crypto market and drive economic growth in the sector.