Jane Street Bets Spark Rally in Bitfarms, Cipher, and Hut 8 Shares

Bitcoin and cryptocurrency mining stocks experienced a notable rally last week, driven by fresh investor interest following disclosures of significant holdings by major trading firms. The momentum continued into Friday, as market participants responded positively to these developments, reinforcing the growing importance of institutional interest in the crypto space.

Shares of leading Bitcoin mining companies surged last week after trading firm Jane Street revealed large passive holdings in several publicly traded crypto miners. Filings submitted to the U.S. Securities and Exchange Commission on Thursday showed that Jane Street’s affiliates hold approximately 5.4% of Bitfarms, 5% of Cipher Mining, and 5% of Hut 8. The holdings are characterized as passive investments rather than activist stakes, reflecting institutional confidence rather than activism.

Following the disclosure, these stocks rallied substantially — with Bitfarms increasing by 10.68%, Cipher Mining jumping nearly 20%, and Hut 8 gaining around 17% by market close on Friday. Other Bitcoin miners, including American Bitcoin Corp., IREN Limited, and Hive Digital Technologies, also posted notable gains of 11% to nearly 18%, underlining a sector-wide positive sentiment.

Jane Street, one of the leading proprietary trading firms active across equities and digital assets, first revealed its interest in Bitcoin miners earlier in 2023 through investments in firms like Marathon Digital. The recent disclosures come shortly after Google announced its 5.4% stake in Cipher Mining on September 25, further underscoring the growing institutional footprint in the crypto mining sector.

This increased interest coincides with a period where Bitcoin mining stocks have outpaced Bitcoin’s own growth—over the past year, Hut 8 has risen approximately 211%, and Bitfarms nearly 131%, compared to Bitcoin’s 73% gains. Such performance underscores the sector’s resilience and potential as a profitable avenue amid rising cryptocurrency prices and expanding blockchain adoption.

The sustained interest from institutional players such as Jane Street and Google underscores a transforming landscape for crypto miners, positioning them as a key component in the evolving ecosystem of digital assets and blockchain technology. As the industry matures, these developments are likely to influence regulatory approaches and investor strategies moving forward.