TLDR
- Bitcoin mining stocks surged 13-28% over the past week as shares of Riot Platforms, Hive Digital, Hut 8, MARA Holdings, and Bitfarms rallied
- Strong US jobs report showed 147,000 new jobs in June with unemployment dropping to 4.1%, exceeding Wall Street expectations
- Bitcoin price retested $110,000 level during the rally, gaining nearly 2% over seven days
- VanEck Digital Transformation ETF tracking 24 digital asset firms rose 3.2% and is up over 20% year-to-date
- Broader stock market reached new all-time highs with S&P 500 and Nasdaq hitting record levels
Bitcoin mining companies experienced a strong rally this week as their stock prices jumped double digits following positive economic data. The gains came as investors responded to better-than-expected employment figures and rising cryptocurrency prices.
Shares of major Bitcoin mining companies posted impressive gains between June 30 and July 3. Riot Platforms, Hive Digital, Hut 8, MARA Holdings, and Bitfarms all surged between 13% and 28% during the four trading sessions before the Independence Day holiday weekend.
The rally was triggered by Thursday’s US nonfarm payrolls report, which showed the economy added 147,000 jobs in June. The unemployment rate dropped to 4.1% from the previous month’s 4.3%, beating Wall Street’s forecasts.
Bitcoin’s price performance also supported the mining stock rally. The cryptocurrency reached a session high of $110,541 on Friday before pulling back during midday trading. Bitcoin gained nearly 2% over the seven-day period, helping to boost sentiment around mining operations.
The broader cryptocurrency sector participated in the gains. VanEck’s Digital Transformation ETF, which tracks 24 publicly listed digital asset companies including Coinbase, Circle, and MicroStrategy, rose as much as 3.2% on Thursday. The fund is up over 20% year-to-date.
Mining Stocks Mirror Market Rally
The performance of Bitcoin mining stocks reflected movements in the broader equity markets. The S&P 500 Index and Nasdaq Composite Index both reached new all-time highs during Thursday’s holiday-shortened trading session.
Investors viewed the employment data as supporting the Federal Reserve’s soft-landing economic scenario. While workforce participation dropped to its lowest level since 2022, economists attributed the decline to immigration policy changes that may be tightening labor supply.
The jobs report likely rules out immediate interest rate cuts this summer. However, crypto research strategist Matt Mena from 21Shares noted that the “broader macro picture remains supportive of rate cuts.”
Mena explained that the current economic backdrop represents conditions where “digital assets tend to thrive.” He pointed to the potential for lower interest rates, improving risk sentiment, and regulatory clarity through pending legislation.
Industry Consolidation Continues
The mining sector continues to see consolidation among major players. Four companies now control over 20% of the global Bitcoin hashrate, collectively exceeding 200 exahashes per second.
MARA Holdings is pursuing aggressive expansion plans, targeting 75 exahashes per second by the end of 2025. Iris Energy has surpassed the 50 exahash milestone, joining peers CleanSpark and Cango in reaching new capacity levels.
Some miners are also exploring diversification strategies. Bit Digital announced a major transition from Bitcoin mining to Ethereum staking, though this move led to a sharp drop in its stock price following a $150 million share sale.
The industry faces operational challenges, particularly during summer months when high temperatures and grid pressures can reduce mining output. Several public miners reported lower hashrates and reduced Bitcoin production in June, especially in Texas where some companies cut output by up to 25%.
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