Bitcoin mining stocks posted impressive gains this week, riding a wave of market optimism fueled by stronger-than-expected US jobs data. Companies like Riot Platforms (RIOT), Hive Digital (HIVE), Hut 8 (HUT), Marathon Digital (MARA), and Bitfarms (BITF) saw gains between 13% and 28% over four trading sessions . This rally occurred despite a partial pullback on Thursday ahead of the US Independence Day holiday weekend.
The catalyst came from June’s nonfarm payrolls report showing 147,000 jobs added—exceeding forecasts—while unemployment dipped to 4.1% . Though the data reduced immediate hopes for summer rate cuts, analysts noted the broader macro environment remains supportive for digital assets. Matt Mena of 21Shares highlighted that conditions like potential rate cuts and regulatory clarity create fertile ground for crypto growth .
Mining Stocks Outperform Broader Market
The mining sector’s surge mirrored record highs in the S&P 500 and Nasdaq , with the VanEck Digital Transformation ETF (DAPP)—which holds major crypto firms—rising 3.2% in Thursday’s session . This divergence from Bitcoin relatively modest 2% weekly gain underscores how mining stocks often amplify crypto market movements.
The VanEck Digital Transformation ETF (DAPP) is up over 20% year-to-date. Source: Yahoo Finance
Strategic Positioning Pays Off
Major miners like Marathon Digital are capitalizing on this momentum through aggressive expansion. MARA recently announced plans to reach 75 exahash/second (EH/s) by year-end—a 40% capacity increase from 2024—bolstered by 1.7 gigawatts of captive power infrastructure . CEO Fred Thiel emphasized this aligns with their “low-cost power and efficient capital deployment” strategy .
Industry Challenges Persist
Despite the rally, miners face headwinds:
• Production costs are rising, with median mining expenses expected to exceed $70,000/BTC in Q2
• Network difficulty recently hit record highs
• Post-halving revenue pressure continues with low transaction fees
