JPMorgan Raises Bitcoin Miner Price Targets

JPMorgan analysts have raised price targets for several Bitcoin mining stocks, adjusting their evaluations to reflect the value of these companies' power assets and Bitcoin holdings.

The report, shared on December 10, includes updates for four companies: MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN). These stocks are now trading close to or above their new targets.

Previously, JPMorgan assessed these companies based on their expected gross profits over four years. However, the analysts have expanded their approach by factoring in the value of land and power assets, as well as a premium for Bitcoin holdings, similar to the strategy used by software company MicroStrategy (MSTR), which holds the largest Bitcoin treasury among corporations.

MicroStrategy has seen significant gains, with its stock up nearly 450% year-to-date, far outperforming Bitcoin’s 125% rise. The company currently holds around $40 billion in Bitcoin. Other major miners like Marathon, Riot, and CleanSpark also have large Bitcoin treasuries, with respective values of approximately $3.9 billion, $1.1 billion, and $890 million.

Despite the Bitcoin network’s April halving event, which cut block rewards in half and squeezed miners’ margins, companies like Riot and CleanSpark have remained resilient. These miners have strengthened their operations through acquisitions, boosting their hashrates and power capacities. Riot, in particular, is noted for having the most valuable power portfolio in JPMorgan’s coverage, estimated at $1.3 billion.

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