JPMorgan Adjusts Bitcoin Miner Ratings, Highlights Preference for Pure-Play Operators
JPMorgan has updated its coverage on bitcoin mining stocks to reflect second-quarter earnings, shifts in network hashrate, and the rising price of bitcoin, which was trading near $118,700 at the time of publication.
The firm upgraded Marathon Digital Holdings (MARA) to Overweight, lifting its price target to $22 from $19, implying approximately 30% upside from Friday’s closing price just above $17.
Conversely, Iris Energy (IREN) and Riot Platforms (RIOT) were both downgraded to Neutral from Overweight. Despite the lowered ratings, JPMorgan raised its price targets for IREN to $16 from $12, and for Riot to $15 from $14.
CleanSpark (CLSK) retained its Overweight rating and continues to be JPMorgan’s top pick among miners. The bank increased its price target to $15 from $14, signaling around 30% potential upside from Friday’s close below $12.
Cipher Mining (CIFR), which remains unrated by JPMorgan, was assigned a new price objective of $6.
“In a shift, we favor the pure-play operators within our coverage universe, as they offer the best relative value and are best positioned to benefit from a rising bitcoin price,” analysts Reginald Smith and Charles Pearce wrote.
The analysts added that improved mining economics driven by bitcoin’s appreciation were factored into the revised targets.
