Bitcoin mining stocks rose after Jane Street announced that she owns small stakes in Cipher Mining, Bitfarms, and Hut8. Thursday's news boosted investors' confidence in cryptocurrency mining.
Jane Street shared the news in a filing with the U.S. Securities and Exchange Commission (SEC), saying the investment was passive and not intended to control the company.
Jane Street reveals 5% ownership of Cipher Mining
Jane Street and its affiliates announced that they currently hold approximately 5% of Cipher Mining's total stock (approximately 19.68 million shares). Of this amount, Jane Street Capital holds 0.2%, Jane Street Options holds 2.1%, and Jane Street Global Trading holds 2.7%.
jeremy kernHe is the official representative of all Jane Street companies. The filing was signed and filed under Rule 13d-1(c). Investors follow this rule when they purchase shares in a company solely as an investment and not to exercise control or influence over the company.
Cipher Mining builds state-of-the-art data centers that use high-performance computers to mine Bitcoin. The company's stock rose nearly 20% on Friday to about $4.28 following Jane Street's announcement.
Just before Jane Street made this investment, Google announced in late September that it had acquired a 5.4% stake in Cipher Mining. With both Google and Jane Street currently involved in crypto mining, investors are confident that the mining industry will expand.
Bitcoin miners extend rally as sector outperforms Bitcoin
When news spread that Jane Street had bought shares in multiple Bitcoin mining companies, investors started buying mining stocks and prices rose. Several Bitcoin miners had already made gains of 8% to 13% by the end of Thursday. By Friday's close, BitFarms (BITF) was up 10.68%, Cipher Mining (CIFR) was up 19.73%, and Hut8 Mining (HUT) was up 17.27%.
American Bitcoin Corp. also rose 11.29%, IREN Limited rose 12.60%, and Hive Digital Technologies rose 17.77%. These numbers showed that investors were not only buying Bitcoin itself, but also transferring money to companies that built and operated Bitcoin mining facilities.
Over the past year, major mining companies have been investing in new Bitcoin mining machines that consume less power and are more powerful. They have also built larger, more advanced data centers and negotiated cheaper power contracts to increase profits. These upgrades allow miners to profit even if the Bitcoin price rises too slowly.
At the same time, Bitcoin prices remain high, restoring investor confidence in the market. Over the past 12 months, Bitfarms is up 131%, Hut 8 is up 211%, and Bitcoin itself is up about 73%.
Experts say the investments by Jane Street and Google are sparking interest among traditional investors in the industry. Additionally, improving global energy prices and clarifying government regulations have enabled companies to save more money and increase production.
The U.S. government and regulators have also begun working on clearer rules to allow companies to operate more openly, rather than creating new barriers. Mining companies no longer have to fear sudden regulatory changes and can attract more investment to plan for future growth.
In a related development, U.S. Energy Secretary Chris Wright recently proposed new rules that would require the Federal Energy Regulatory Commission (FERC) to establish a fair and efficient method for facilities that require more than 20 megawatts of power to connect directly to large-scale electrical transmission systems.
This is because electricity demand is at an all-time high, primarily due to the proliferation of AI infrastructure and large-scale cryptocurrency mining activities. The Secretary's letter states that these sectors are now among the most energy-intensive sectors in the United States, and clear rulemaking is needed to address them.
Under the new rules, crypto mining companies and AI data centers can have their connections reviewed within 60 days, provided they cover the cost of network upgrades. These companies typically have to wait a long time to connect to the U.S. power grid.
According to analysts, This change will allow miners to get to work faster and help the United States remain globally competitive. The plan shows that the administration aims to boost economic growth by promoting innovative ideas and concepts, supporting both technology and cryptocurrencies.
