Bitcoin Miners Surge as BTC Breaks $90K, Stocks Rally Across Crypto Sector

Bitcoin’s (BTC) breakout above $90,000 sparked a rally across the cryptocurrency sector, sending mining stocks soaring on Tuesday. The surge in BTC’s price, which has been steadily gaining momentum, reignited investor interest in crypto-related stocks, particularly those involved in mining.

Bitcoin miners, which have struggled with tight margins and growing competition for months, outperformed BTC’s 5% gain by posting double-digit increases. Bitdeer Technologies (BTDR) led the way with a 20% rally, followed by Bitfarms (BITF), CleanSpark (CLSK), Cipher Mining (CIFR), Marathon Digital (MARA), and Riot Platforms (RIOT), which saw their stocks rise between 10% and 15%.

Shares of Strategy (MSTR), known for holding a significant amount of BTC, and Coinbase (COIN), the leading U.S. crypto exchange, also saw notable gains of 8% to 9% during the session.

The rally extended to traditional financial markets as well, with the Nasdaq and S&P 500 gaining 2% and 1.7%, respectively, following positive news regarding potential de-escalation in U.S.-China tariff disputes, which boosted broader investor sentiment.

Rebounding After Months of Struggles

The rally in bitcoin mining stocks marks a sharp turnaround after months of underperformance. Miners had been weighed down by falling profit margins, increasing mining difficulty, and the challenges posed by U.S. tariffs on imported mining equipment, which have driven up costs for miners operating in the U.S. Many of these companies had seen their stock prices drop to multi-month lows.

The U.S. tariff policy has been particularly impactful for American mining operations, raising the cost of ASIC (application-specific integrated circuit) machines used for bitcoin mining. The increased costs are expected to slow growth or halt expansion for U.S.-based mining companies in the coming months.

Taras Kulyk, CEO of Synteq Digital, a mining hardware provider, commented, “The tariffs will materially affect future spending and CapEx in the U.S.” He predicted that countries like Canada might benefit as mining operations seek alternative locations for expansion.

Bitdeer’s Strategy and Tether’s Investments

One company that has managed to perform well amid these challenges is Bitdeer Technologies. The company, which has shifted its focus from selling mining rigs to developing self-mining capabilities, is seeing rewards for its strategy. Additionally, Tether, the issuer of USDT, has made a $32 million investment in Bitdeer shares, further fueling the company’s growth.

Despite this performance, most miners have struggled since December, long before the U.S. tariffs were introduced. Now, with bitcoin breaking key resistance levels, miners are experiencing a boost as a proxy for BTC’s price movements.

Looking Ahead: Earnings Reports and Tariff Risks

Despite the current rally, the looming issue of tariffs will continue to affect U.S. mining operations. With earnings season approaching, investors will be watching closely for any insights from companies on how they plan to navigate the ongoing tariff challenges.

Tesla, a key player in the crypto space with its substantial bitcoin holdings, is set to report earnings after the market closes on Tuesday. Investors will likely pay close attention to any comments from CEO Elon Musk regarding how tariffs may affect Tesla’s financial outlook, especially considering the company’s exposure to bitcoin and its broader impact on risk assets.

As the crypto rally continues, the real test will come when companies report earnings and provide guidance on how geopolitical risks, such as tariffs, will influence their strategies going forward.