The past two weeks have seen a remarkable uptick in the market capitalization of major crypto mining stocks, with most companies experiencing double-digit percentage growth.
Marathon Digital (ticker MARA) led the pack, seeing its market cap jump from $5.51 billion on July 8 to $7.56 billion by the end of the week, a staggering 37% increase in just five days. While there was a slight pullback to $6.99 billion over the following week, the company still maintained a 27% gain over the 11 days ending on July 19.
Riot Platforms (RIOT) followed a similar pattern, climbing from $2.78 billion to $3.67 billion, netting a 32% weekly increase in the second week of July before settling at $3.16 billion towards the end of last week. Hut 8 Mining (HUT) saw more modest but significant growth, rising from $1.58 billion two weeks ago to $1.76 billion to close out this week, an 11% increase.
Smaller players in the space also benefited from this surge. BIT Digital (BTBT) grew from $456 million to $508 million two weeks ago before ending at $470 million this week, while Hive Digital (HIVE) increased from $392 million to $427.9 million during the same period. Canaan and BIT Mining also saw gains, though less pronounced than their larger counterparts.
While it's always challenging to attribute market movements to specific events, it's hard to ignore the impact recent political developments have had on the crypto sector.
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On July 13, former U.S. President Donald Trump, the Republican nominee for the 2024 presidential election, survived an assassination attempt during a campaign rally, which saw Trump wounded in his right ear.
In recent months, Trump has positioned himself as a pro-crypto figure, even recently stating that he wants all future Bitcoin to be mined in the United States.
It's worth noting the most significant gains in mining stocks occurred between July 8 and July 15, encompassing the date of the assassination attempt and the statement on mining itself. While correlation doesn't imply causation, the timing is certainly intriguing.
The crypto market, and particularly the mining sector, may have responded positively to Trump's survival. His continued presence in the political landscape could mean ongoing support for crypto-friendly policies, including increased attention to domestic BTC mining.
This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry’s most thought-provoking trends.
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