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Bitcoin Miners and Crypto Companies Potential Winners with Trump Presidency
Bitcoin miners and cryptocurrency companies that have struggled to go public in the US may find themselves at an advantage under a potential second Donald Trump presidency. Conversely, foreign companies might face significant setbacks. Trump’s growing favorable stance toward cryptocurrencies, amidst rising election odds, has fueled this sentiment among market observers.
A CBS News poll suggests Trump holds a majority of likely voters against President Joe Biden. Notably, Biden recently announced he will not seek reelection, endorsing Vice President Kamala Harris for the Democratic nomination. “Almost everyone in the US would benefit if they operate under the new rules,” stated Christian Catalini from MIT Cryptoeconomics Lab.
Bitcoin Miners
Bitcoin prices have surged nearly 10% since Biden's subpar debate performance in June and an attempted assassination on the Republican nominee. Shares of Bitcoin mining companies have seen considerable jumps, with Marathon Digital and Riot Platforms surging around 30%, and Cipher Mining climbing nearly 50%. Trump has expressed support for Bitcoin mining, suggesting it could be critical against a central bank digital currency (CBDC) and advocating for it to be “MADE IN THE USA!!!”
IPO Candidates
Despite the 2022 crypto market collapse, companies are planning initial public offerings (IPOs) again. Circle, which issues the stablecoin USDC, filed for an IPO in January. Northern Data, transitioning from crypto mining to AI computing, and Kraken, a major US-based crypto exchange, are also exploring US listings. The SEC’s stringent stance on digital assets has been a significant obstacle. However, Trump could appoint a more crypto-friendly SEC chair, easing pathways for these companies.
Digital Exchanges
A Trump presidency may also encourage the banking sector to be more accommodating to crypto firms. Currently, crypto platforms face a shrinking pool of banks for fiat-to-crypto conversions. The bankruptcy of crypto-friendly banks like Silvergate and Signature has compounded this issue, restricting access to essential banking services.
Offshore Rivals
While a Trump victory would be welcomed by many in the industry, some companies, particularly offshore crypto firms like Binance, OKX, and Deribit, might suffer. These firms currently enjoy a competitive edge due to the stringent US regulations. With support from a Trump administration, US-based companies could offer more sophisticated and leveraged trading services, surpassing their offshore rivals.
Another potential loser could be Bitmain, a Chinese conglomerate dominating the Bitcoin mining machine market. Trump’s trade policies and his push for American-made Bitcoin mining could pose challenges for Bitmain, especially as US firms like Block and Auradine grow in the semiconductor space.
Central Bank Digital Currencies
Trump has positioned himself firmly against CBDCs, a move aligned with many crypto advocates who view digital currencies as tools for increased government surveillance. Trump has pledged to prevent the digitization of the dollar, setting a clear opposition to such financial regulatory measures.
