- Several Bitcoin mining stocks experienced a double-digit rally after Jane Street doubled down on its investments in Bitfarms, Cipher Mining, and Hut 8.
Jane Street Capital, a trading firm and liquidity provider, recently doubled down on several Bitcoin (BTC) mining companies. The New York-headquartered entity revealed its big bets on Bitfarms (BITF), Cipher Mining (CIFR), and Hut8 (HUT) on Thursday.
According to its 13G filings on October 23, Jane Street reported holding 29.9 million shares in Bitfarms, 19.6 million shares in Cipher Mining, and 5.3 million shares in Hut 8.
The announcement led to double-digit percentage intraday gains in the companies’ stocks.
Immediate Payoff in Jane Street’s Bitcoin Mining Stock Bet
Cipher Mining emerged as the highest performer on Nasdaq among the three, with a 19.9% price action, peaking at $20.69 per share. Hut 8 stocks climbed to 15% with a $46.82 top, and Bitfarms shares got a 10% boost at a $4.77 high.
Their momentum carried over on Friday as Cipher Mining closed at $20.66 with a 19.73% daily gain. Meanwhile, Hut 8 and Bitfarms ended the week at $47.66 with a 17.27% gain and $4.61 with a 10.68% gain, respectively.
Other notable performers during the period include HIVE Digital Technologies (HIVE) and Bitdeer Technologies Group (BTDR). HIVE wrapped up the week at $6.03 with a 17.77% gain, and BTDR closed at $23.24 with 7% gain.
Bitcoin Mining Stocks Decouple From BTC’s Price
The crypto community considers Jane Street’s substantial investment as a sign of confidence in the trajectory of BTC, which is tied to the movements of Bitcoin mining stocks. However, JPMorgan analysts have recently shed light on the correlation between BTC price and Bitcoin mining companies.
According to a report, the team led by JPMorgan Managing Director Nikolaos Panigirtzoglou explained that Bitcoin mining firms no longer serve as one of the proxies for BTC exposure. Due to the heavy integration of AI (artificial intelligence) in their operations and business models to maximize revenue streams, they have already diverged from the original trend with BTC toward a pattern in sync with AI stocks and AI-related developments.
Jane Street’s Strategy
Jane Street is a global proprietary trading firm known for its quantitative research and algorithmic trading technology. The institution was established in 2000 and has since grown its reach from New York to London, Hong Kong, and Amsterdam.
Instead of using its clients’ money to trade assets, it utilizes its own capital to trade, ensuring optimal performance and independence in its strategies. The method also provides protection for its customers’ funds.
