Bitcoin mining stocks post double-digit gains in weekly rally

Crypto mining stocks logged strong weekly gains, despite a pullback on Thursday, in a rally fueled by signs that a favorable macroeconomic backdrop could support the US Federal Reserve’s soft-landing narrative.

Shares of Riot Platforms (RIOT), Hive Digital (HIVE), Hut 8 (HUT8), MARA Holdings (MARA), and Bitfarms (BITF) surged between 13% and 28% over the past four trading sessions, as US markets closed early on Thursday ahead of the Independence Day holiday weekend.

In Thursday’s session, investors responded to a better-than-expected US nonfarm payrolls report, though several public mining companies retraced gains.

Meanwhile, VanEck’s Digital Transformation exchange-traded fund (ETF) — which tracks an index of 24 publicly listed digital asset firms, including Coinbase (COIN), Circle (CRCL), Strategy (MSTR) and several mining companies — rose by as much as 3.2% on Thursday.

Bitcoin miners follow broader stock market higher

The rally in Bitcoin mining stocks mirrored a broader market upswing that pushed the S&P 500 Index and the Nasdaq Composite Index to new all-time highs in a holiday-shortened session on Thursday.

Gains were sparked after the Bureau of Labor Statistics reported that the US economy added 147,000 jobs in June, while the unemployment rate fell to 4.1% from 4.3% — figures that exceeded Wall Street’s expectations.

Although workforce participation dropped to its lowest level since 2022, economists attributed the decline to an immigration crackdown that may be tightening labor supply.

While the stronger-than-expected jobs report likely rules out immediate rate cuts this summer, the “broader macro picture remains supportive of rate cuts,” wrote Matt Mena, a crypto research strategist at 21Shares.

Mena noted that the current macro backdrop is the kind in which “digital assets tend to thrive,” pointing to the potential for lower interest rates, improving risk sentiment and the prospect of regulatory clarity through the market structure bill and the GENIUS Act.