Key Takeaways:
- TeraWulf surged nearly 11%, leading a broad rally in crypto mining equities
- Cipher Digital gained 9%, while CleanSpark, MARA, IREN and Hut 8 each rose over 6%
- The Bitcoin miner ETF WGMI climbed nearly 6%, tracking the sector-wide move
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Crypto mining stocks rally 11% as bitcoin recovery lifts sector
US-listed crypto mining stocks surged on May 26, with TeraWulf jumping 11% and Cipher Digital gaining 9% as bitcoin prices recovered from first-quarter lows.
"The mining equipment market would likely show a more meaningful recovery if hash price rose to about $40 to $45 per exahash per day," Nangeng Zhang, chairman and chief executive of Canaan, said during the company's first-quarter earnings call, citing cautious capital spending among miners.
CleanSpark, MARA Holdings, IREN and Hut 8 each rose more than 6%, while the Valkyrie Bitcoin Miners ETF WGMI added nearly 6%. The rally came as bitcoin recovered toward $77,000 after falling from approximately $87,000 at the end of 2025 to $67,000 by March 31, according to CoinGecko data. Canaan, which reported $62.7 million in first-quarter revenue, sold 4.1 exahash per second of computing power during the quarter as customers delayed purchases because of low hash prices and market uncertainty.
The sector-wide advance reflects growing optimism that the worst of the mining downturn may be passing. Canaan guided second-quarter revenue of $35 million to $45 million, with Zhang noting that bitcoin and hash prices had recovered somewhat from first-quarter lows. The company is expanding its North American energy footprint through a 49% stake in the ABC Projects in West Texas, which have 120 megawatts of installed power capacity and electricity costs below $0.03 per kilowatt hour.
TeraWulf's 11% gain made it the top performer among the group, followed by Cipher Digital at 9%. The six stocks that rose more than 6% included CleanSpark, MARA Holdings, IREN and Hut 8, according to market data. Canaan ended the first quarter holding 1,808 bitcoins and 3,952 Ethereum. The market value of its bitcoin holdings was $121 million as of March 31 and had increased to nearly $140 million after the subsequent price recovery, Chief Financial Officer James Jin Cheng said on the earnings call.
The mining equipment maker posted a gross loss of $23 million in the quarter, driven entirely by a $25 million non-cash inventory write-down. Excluding that impact, adjusted gross profit was approximately $1 million, representing a break-even adjusted gross margin. Adjusted EBITDA loss widened to $76 million. North American customers accounted for more than 80% of total product sales in the first quarter, up from 75% in the prior quarter.
Zhang said a more meaningful recovery in mining equipment demand would require hash price to reach approximately $40 to $45 per exahash per day, while a level around $55 could create much stronger demand. Recent hash price levels remained in the low $30s after pulling back from a move closer to $40.
This article is for informational purposes only and does not constitute investment advice.
