Jane Street Discloses 5% Stakes in Three Bitcoin Mining Companies

TLDR

• Jane Street disclosed holdings of approximately 5% in three major Bitcoin mining companies: Bitfarms (5.4%), Cipher Mining (5%), and Hut 8 (5%)
• Following the disclosure on Thursday, mining stocks rallied 8-13% and continued gains Friday with Cipher Mining up 19.73%, Hut 8 up 17.27%, and Bitfarms up 10.68%
• The positions represent passive trading investments rather than activist stakes, with filings submitted to the SEC showing Jane Street’s affiliates as holders
• Other mining stocks also gained, including American Bitcoin Corp. (11.29%), IREN Limited (12.60%), and Hive Digital Technologies (17.77%)
• Bitcoin mining companies have outperformed Bitcoin itself over the past year, with Bitfarms up 131% and Hut 8 up 211% compared to Bitcoin’s 73% gain

Jane Street Capital disclosed new positions in three publicly traded Bitcoin mining companies on Thursday, sparking a rally in mining stocks. The New York-based trading firm filed Schedule 13G documents with the Securities and Exchange Commission showing stakes in Bitfarms, Cipher Mining, and Hut 8.

The filings reveal Jane Street holds approximately 5.4% of Bitfarms with 29.9 million shares. The firm owns 5% of Cipher Mining with 19.6 million shares. It also holds 5% of Hut 8 with 5.3 million shares.

Jane Street is a 26-year-old proprietary trading and market-making firm. The company operates in both traditional equities and digital assets markets. The disclosed positions represent passive trading investments rather than activist holdings.

The mining stocks responded immediately to the news. Bitfarms shares jumped 8% on Thursday following the disclosure. Cipher Mining and Hut 8 also posted gains between 8% and 13% that day.

The rally continued into Friday’s trading session. Cipher Mining closed up 19.73% at market close. Hut 8 finished the day up 17.27%.

Bitfarms ended Friday’s session up 10.68%. The stock reached an intraday high of $4.77. Cipher Mining hit $20.69 during Friday’s trading.

Other Bitcoin mining companies also saw gains. American Bitcoin Corp. rose 11.29% on Friday. IREN Limited climbed 12.60% for the day.

Hive Digital Technologies gained 17.77% on Friday. Bitdeer Technologies Group rose more than 7% to reach $23.70. The broader rally lifted multiple mining stocks across the sector.

Mining Companies Outperform Bitcoin

Bitcoin mining involves using specialized computers to solve complex mathematical problems. Miners verify transactions and introduce new Bitcoin into circulation. The process keeps the Bitcoin network operational and secure.

Jane Street first disclosed exposure to Bitcoin miners in 2023. The firm invested in Marathon Digital holdings that year. The company has since expanded its mining stock portfolio.

Google previously acquired a 5.4% stake in Cipher Mining on September 25. The tech giant’s investment preceded Jane Street’s disclosure by nearly a month. Large institutional investors have shown growing interest in mining companies.

Cipher Mining Inc., CIFR

Performance Comparison

Mining company stocks have outpaced Bitcoin’s price gains over the past year. Bitfarms has increased nearly 131% over the last 12 months. Hut 8 has risen approximately 211% during the same period.

Bitcoin itself is up about 73% over a one-year period. The cryptocurrency trades below the percentage gains of several mining companies. Mining stocks have attracted investors seeking leveraged exposure to Bitcoin’s price movements.

Jane Street reportedly participated in Kraken’s recent $500 million funding round. The firm has connections to the crypto industry beyond mining stocks. Former FTX founder Sam Bankman-Fried and former Alameda Research CEO Caroline Ellison both worked at Jane Street before entering the crypto sector.

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