Trump-backed mining companies’ share prices have soared and halved, while financing challenges coexist: Are mining companies welcoming new opportunities or facing challenges?

Bitcoin mining stocks rose by about 10% on Wednesday, with the top 10 mining companies performing particularly well. The rally was mainly due to U.S. presidential candidate Donald Trump's promise to strengthen U.S. crypto mining operations and further consolidate the country's leading position in the field.

According to Google Finance data, TeraWulf (WULF) and Hut 8 Mining (HUT) saw their share prices rise by 10.5% and 10.07% respectively on June 12. Core Scientific (CORZ), Iris Energy (IREN) and Cipher Mining (CIFR) rose by 9.87%, 9.72% and 8.94% respectively. CleanSpark (CLSK) and Riot Platforms (RIOT) rose by 8.15% and 6.5% respectively, and Marathon Digital (MARA), the largest Bitcoin mining company by market value, also saw a 2.4% increase.

Before Trump announced his support, the share prices of these mining companies were relatively stable, and the market was more concerned about future uncertainties. However, Trump issued a statement on Truth Social saying that Bitcoin mining may be the last line of defense against central bank digital currencies (CBDCs) and called for all remaining Bitcoins to be made in the United States. He also promised to strongly support the Bitcoin mining industry if elected president.

Trump's statement significantly boosted market confidence and triggered a collective rise in mining companies' share prices. In the future, whether these mining companies can continue to maintain their strong momentum with policy support will be the focus of market attention.

Trump meets with top Bitcoin miners: promises to keep mining in the United States, stock prices rise

Behind the rise in the share prices of Bitcoin mining companies is former US President Donald Trump's public support for Bitcoin mining. On June 12, Matthew Schultz, executive chairman of Bitcoin mining company CleanSpark, revealed that senior executives of several Bitcoin mining companies met with Trump at Mar-a-Lago on Tuesday night. Participants included industry representatives such as Riot Platforms CEO Jason Les.

Schultz said that Trump clearly expressed his love and understanding of cryptocurrencies at the meeting, and pointed out that Bitcoin mining companies help stabilize the energy supply of the power grid. Trump also promised to speak up for mining companies if he returns to the White House. This statement undoubtedly injected a shot in the arm for mining companies and further boosted market confidence.

In addition to CleanSpark and Riot Platforms, the participants of this "Presidential Roundtable for Bitcoin Mining" also included well-known industry companies such as Marathon Digital. After the meeting, several participants shared photos with Trump on social media and expressed high praise for the results of the meeting. S Matthew Schultz of CleanSpark wrote on the X platform: "I just met with someone who likes Bitcoin very much, and he also appreciated our work in Georgia, Mississippi and Wyoming." Jason Les of Riot Platforms also said: "I had an excellent discussion with former President Trump on Bitcoin and America's energy advantage."

The meeting comes at a time when Bitcoin miners are facing strong opposition due to climate change and the impact on local power grids. Previously, the Democratic Party has been promoting and criticizing the review of Bitcoin miners' energy consumption and carbon emissions. However, the cryptocurrency industry continues to work hard to influence US political decision-making by donating to candidates who support digital assets. At the NFT dinner in May, Trump publicly demonstrated his shift in attitude towards the cryptocurrency industry and regulation, and said his campaign team would accept cryptocurrency donations.

Trump's public support not only boosted the share prices of mining companies, but also provided policy guarantees for the future development of the Bitcoin mining industry. Next, we will analyze the recent performance and future trends of these mining companies in depth.

A review of the top eight mining companies by market value behind Trump's support: choosing the best

The significant rise in the share prices of Bitcoin mining companies is due to former US President Donald Trump's public support for the Bitcoin mining industry. On June 12, Trump said on Truth Social that Bitcoin mining may be the last line of defense against central bank digital currencies (CBDCs) and hopes that all remaining Bitcoins can be made in the United States. He also promised to strongly support the Bitcoin mining industry if elected president. The following are eight more noteworthy Bitcoin mining companies in terms of market value and their recent performance:

TeraWulf Inc.

TeraWulf (WULF) is the Bitcoin mining company with the largest share price increase, up 10.5% on June 12. The digital asset technology company focuses on developing and operating environmentally friendly Bitcoin mining facilities within the United States. TeraWulf's mining facilities are powered by clean, affordable and reliable energy sources. The company has partnered with Cumulus Coin to launch the first Bitcoin mining platform in the United States that is 100% powered by nuclear energy. Its 200MW Nautilus facility is connected to the Susquehanna Nuclear Power Plant in Pennsylvania.

Hut 8 Mining

Following closely behind is Hut 8 Mining (HUT), whose stock price rose by 10.07%. Hut 8 is one of the largest digital asset miners in North America that focuses on innovation. The company and its subsidiaries are mainly engaged in the mining of digital assets, using specialized equipment to solve computing problems to verify transactions on different blockchains and receive Bitcoin. Hut 8 operates cloud and hosting data center facilities in Canada for corporate customers seeking computing 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 share price rise by 9.87%. As one of the largest blockchain data center providers and digital asset miners in North America, Core Scientific has been operating blockchain data centers in North America since 2017, conducting digital asset hosting mining and self-mining. The company has completed several large-scale financings and has accumulated rich experience in deploying, powering up, and maintaining mining machines, maximizing Bitcoin production and return on investment.

Iris Energy

Iris Energy (IREN) saw its share 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 uses excess renewable energy to support energy networks while building a profitable business in an emerging field. The company's founders, Dan and Will, have extensive experience in renewable energy and traditional mining, and they apply this expertise to the Bitcoin mining business.

Cipher Mining

Cipher Mining (CIFR) shares rose 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 the fields of technology, fintech, energy and finance. The company is committed to providing a solid foundation for the Bitcoin network to support its future development and application.

CleanSpark

CleanSpark (CLSK) shares rose 8.15%. Founded in 1987, the company is a bitcoin mining company that owns and operates five separate data centers with a total developed capacity of 230 megawatts. CleanSpark is committed to developing infrastructure in low-carbon energy communities, using wind, solar, nuclear and hydroelectric power. The company has also further expanded its operations by acquiring three bitcoin mining facilities in Mississippi.

Riot Platforms

Riot Platforms (RIOT) shares rose 6.5%. Riot is a leading bitcoin mining company focused on maximizing its bitcoin production and return on investment. The company operates multiple large-scale mining facilities in North America and works with major hardware suppliers to ensure the efficiency and stability of its operations.

Marathon Digital

Marathon Digital (MARA) shares rose 2.4%. As the largest Bitcoin mining company by market value, Marathon Digital is mainly engaged in digital asset mining and is committed to building efficient and sustainable mining facilities. Although the increase was small this time, Marathon Digital's influence in the industry cannot be underestimated.

A detailed review of these leading mining companies shows that Trump’s support has significantly boosted market confidence.

With Trump's support and the test of halving, will mining companies usher in new opportunities or face a reshuffle?

Bitcoin miners face the dual challenges of financing and halving in the second quarter of 2024. Although former President Donald Trump's support has injected a shot in the arm to the market and mining company stocks have generally risen, uncertainty about the future remains.

According to BlocksBridge Consulting, equity financing activities of mining companies are expected to drop significantly in the second quarter. As of mid-May, investment was less than $500 million, which is much lower than in previous quarters. Although Marathon Digital, CleanSpark and Riot Platforms raised a large amount of funds in the last quarter, the slowdown in financing activities may affect their response to the upcoming halving event.

Bitcoin halving will reduce mining rewards by half, increase mining difficulty, and directly affect mining companies' revenue. Despite this, the top five Bitcoin mining companies did not sell a large number of Bitcoins in the first quarter, but continued to hold them. Global Bitcoin miners hold more than 700,000 Bitcoins, accounting for 3.4% of the total supply.

In the first quarter of 2024, Riot Platforms' net revenue reached a record $211.8 million, despite rising mining costs and falling production. Marathon Digital's revenue increased by 223% year-on-year, but still fell short of expectations. These financial performances show the active preparations of mining companies before the halving and the uncertainty of the market.

Bitcoin halving is a stress test for mining companies. Unless the price of Bitcoin remains above $40,000, most miners will face profitability challenges. Mining companies need to control costs and seek more revenue models to cope with future uncertainties.

Although Trump's support has boosted market confidence, the challenges brought by the halving will still test the financial resilience and adaptability of mining companies. Whether mining companies can gain a foothold in the new round of market reshuffle will depend on their strategies and execution in dealing with these challenges.