JPMorgan (NYSE:JPM) has weighed in on crypto mining companies, taking into account the recent price changes, the network hashrate, and other news specific to the industry.
The bank’s analysts provided an updated analysis on the Bitcoin mining industry, adjusting price targets for several key players.
Bitcoin's price surged by 13%, and the network hashrate grew by 4% since their last update on February 29, 2024. Therefore, the financial institution revised its spot Bitcoin price forecast to $68,000, up from $60,000, and increased the baseline network hashrate projection to 600 EH/s, from 575 EH/s.
The report detailed adjustments to price targets and ratings for listed Bitcoin mining companies. Riot Platforms (NASDAQ:RIOT) and Iris Energy Ltd (NASDAQ:IREN) are retained at Overweight, with the latter’s price target adjusted to $15.50 from $15.00, and the former’s target to $10.00 from $10.50.
Marathon Digital (NASDAQ:MARA) writing is reaffirmed at Underweight, with its price target slightly increased to $16.50 from $16.00. CleanSpark (NASDAQ:CLSK) retained a "Neutral" rating, with its price target raised to $15.00 from $14.00.
J.P. Morgan's report also sizes the Bitcoin mining opportunity, estimating the notional value of the remaining 1.3 million Bitcoin at $95 billion, up 11% from late February 2024 and a 106% year-over-year growth.
The analysis suggests that despite concerns over security risks associated with the Bitcoin halving event, previous occurrences had minimal impact on network security, indicating a smooth transition ahead.
Cipher Mining Inc (NASDAQ:CIFR) was also mentioned for its attractive power contracts but less efficient fleet. CLSK was praised for its scale and efficiency, although with limited upside at current prices.
On the other hand, IREN stood out for its expansion strategy and value relative to peers. MARA, described as highly levered to Bitcoin prices, is moving towards operating its mining facilities. RIOT was lauded for its scale, expansion path, and cost advantages.