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JPMorgan has weighed in on crypto mining companies, taking into account recent price changes, network hashrate and other industry-specific news.
The bank's analysts provided an updated analysis of the mining industry and adjusted price targets for several key players.
Bitcoin price increased by 13% and the network hashrate increased by 4% since the last update on February 29, 2024. Therefore, the financial institution revised its spot Bitcoin price forecast from $60,000 to $68,000 and increased the base prediction for the network hashrate at 600 EH/s, up from 575 EH/s.
The report details adjustments to price targets and valuations for publicly traded Bitcoin mining companies. Riot Platforms (NASDAQ:) and Iris energy Ltd (NASDAQ:) maintained its Overweight rating, with the latter's price target adjusted from $15.00 to $15.50 and the former's price target adjusted from $10.50 to $10.00.
The letter reaffirms Marathon Digital (NASDAQ:) as Underweight, with the price target slightly increased from $16.00 to $16.50. CleanSpark (NASDAQ:) maintained a Neutral rating and increased its price target from $14.00 to $15.00.
JP Morgan's report also quantifies Bitcoin mining opportunities and estimates the notional value of the remaining 1.3 million Bitcoin at $95 billion, an increase of 11% from the end of February 2024 and a growth of 106% year-on-year .
The analysis suggests that despite concerns about the security risks associated with the Bitcoin halving, previous events had minimal impact on network security, indicating a smooth transition.
Cipher Mining Inc (NASDAQ:) was also mentioned for its attractive power contracts but less efficient fleet. CLSK has been praised for its size and efficiency, although its potential is limited at current prices.
On the other hand, IREN stood out for its expansion strategy and value compared to its competitors. MARA, which is described as being heavily dependent on Bitcoin prices, is moving to operate its mining facilities. RIOT has been praised for its size, expansion path and cost advantages.
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