Jane Street Discloses Significant Holdings in Bitcoin Mining Stocks, Sparking Sector Rally
New York-based proprietary trading firm Jane Street Capital has revealed sizable stakes in three major publicly traded Bitcoin mining companies, triggering a notable rally across mining stocks. The firm filed Schedule 13G documents with the U.S. Securities and Exchange Commission (SEC) on Thursday, showing passive holdings of approximately 5% in Bitfarms, Cipher Mining, and Hut 8.
**Details of Jane Street’s Holdings**
According to the filings, Jane Street holds:
– **Bitfarms:** 5.4% ownership, equating to 29.9 million shares
– **Cipher Mining:** 5% ownership, representing 19.6 million shares
– **Hut 8:** 5% ownership, or 5.3 million shares
These stakes reflect passive trading investments rather than activist positions, with the firm’s affiliates listed as holders.
**Market Reaction and Stock Performance**
The disclosure immediately boosted investor confidence, sending mining stocks higher. On Thursday, Bitfarms shares jumped 8%, while Cipher Mining and Hut 8 increased between 8% and 13%. The bullish momentum carried into Friday’s session with even stronger gains:
– Cipher Mining surged 19.73%
– Hut 8 climbed 17.27%
– Bitfarms rose 10.68%, reaching an intraday high of $4.77
Other Bitcoin mining companies also saw positive movements on Friday:
– American Bitcoin Corp. increased by 11.29%
– IREN Limited rose 12.60%
– Hive Digital Technologies jumped 17.77%
– Bitdeer Technologies Group gained over 7%, closing at $23.70
This broader rally highlights growing investor interest across the Bitcoin mining sector.
**Bitcoin Mining Sector Outperforms Bitcoin**
Over the past year, Bitcoin mining stocks have significantly outpaced Bitcoin’s own price gains. Bitfarms has surged nearly 131%, while Hut 8 has posted an impressive 211% increase. In comparison, Bitcoin’s price has risen roughly 73% during the same period.
Bitcoin mining companies have attracted investors seeking leveraged exposure to Bitcoin’s price movements, benefiting from operational growth and sector momentum.
**Background on Jane Street and Institutional Interest**
Jane Street, established 26 years ago, is known for its market-making and proprietary trading across traditional equities and digital assets. The firm first entered the Bitcoin mining space in 2023 with investments in Marathon Digital Holdings and has since expanded its portfolio with these new positions.
Notably, institutional interest in mining companies has been rising. For example, Google acquired a 5.4% stake in Cipher Mining in late September, just weeks before Jane Street’s recent disclosure.
Aside from mining stocks, Jane Street also reportedly participated in Kraken’s $500 million funding round, underscoring its broader connections in the crypto industry. Interestingly, key figures such as former FTX founder Sam Bankman-Fried and ex-Alameda Research CEO Caroline Ellison previously worked at Jane Street before their ventures into cryptocurrency.
**What is Bitcoin Mining?**
Bitcoin mining involves using specialized hardware to solve complex mathematical problems that verify transactions and add new Bitcoin coins into circulation. This verification process is vital for maintaining the Bitcoin network’s security and functionality.
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Jane Street’s recent disclosures and the ensuing rally demonstrate increasing institutional confidence in Bitcoin mining as a profitable niche within the broader cryptocurrency ecosystem. As mining companies continue to outperform Bitcoin itself, they remain a compelling consideration for investors seeking leveraged exposure to the digital asset market.
https://coincentral.com/jane-street-discloses-5-stakes-in-three-bitcoin-mining-companies/
