Crypto Miners Bounce Back with Bitcoin’s Surge Above $90K
After weeks of underperformance, crypto miners saw a strong rebound on Tuesday, riding the wave of bitcoin’s momentum as it broke past $90,000. The broader crypto market surge reignited investor interest across digital assets, propelling several crypto-related stocks higher.
Shares of Strategy (MSTR), the largest corporate holder of BTC, and the crypto exchange Coinbase (COIN) saw significant gains, rising by 8% to 9% during the session.
However, it was bitcoin miners that led the charge, posting impressive double-digit gains that outpaced Bitcoin’s 5% advance. Bitdeer Technologies (BTDR) surged approximately 20%, while other major miners like Bitfarms (BITF), CleanSpark (CLSK), Cipher Mining (CIFR), Marathon Digital (MARA), and Riot Platforms (RIOT) rose between 10% and 15%.
Meanwhile, the broader equity market also rebounded from a recent dip, with the Nasdaq and S&P 500 rising by 2% and 1.7%, respectively. This recovery came on the back of reports suggesting a potential de-escalation in U.S.-China tariff tensions, which helped lift investor sentiment across risk assets.
Mining Stocks and Tariff Concerns
The surge in mining stocks marks a welcome reversal after several months of underperformance. During that period, miners faced squeezed margins, increased competition from rising hashrate, and challenges posed by U.S. tariff policies, all while broader market conditions weighed heavily on risk assets. As a result, most publicly traded miners have been trading near multi-month lows.
One of the major challenges for U.S.-based mining operations has been the Trump administration’s tariff policy, which threatens to increase the cost of importing ASIC miners, the machines used to mine bitcoin. These tariffs are likely to slow the growth of U.S. mining operations or even halt expansion altogether.
Taras Kulyk, CEO of mining hardware provider Synteq Digital, noted, “The tariffs will materially affect future spending and CapEx in the U.S.” He added that regions with previously higher costs, like Canada, might become more attractive for new infrastructure and capital expenditure, as the new global tariff regime comes into effect.
In response, Bitdeer Technologies, which has outperformed the market, has begun developing its own ASIC manufacturing business. The company made a strategic decision to focus on expanding its self-mining operations rather than selling rigs in a slower market. Additionally, Tether, the issuer of the USDT stablecoin, has been buying up shares of Bitdeer, investing $32 million as of last Thursday.
Despite the recent surge, miner stocks have been on a downtrend since December, even before the U.S. tariff policy was announced. With bitcoin now climbing above key technical levels and liquidity flowing back into the space, miners are likely benefiting as a leveraged play on BTC’s upside potential.
The Road Ahead: Tariffs and Earnings Season
While the recent rally has been positive, the looming impact of tariffs remains a significant factor for miners and other crypto-related stocks, as well as broader risk assets. With earnings season fast approaching, investors will be keen to hear from CEOs about how tariffs are shaping their corporate outlook.
Notably, Tesla, which holds bitcoin in its treasury, is set to report its earnings after market close on Tuesday. Traders will likely be watching closely for any commentary from Elon Musk regarding how the ongoing trade tensions are influencing the company’s strategy and broader market sentiment.
The next few weeks will be pivotal in determining whether the recent momentum for crypto miners can be sustained, or if external factors like tariffs will continue to overshadow their performance.
