What You Need to Know:
- JPMorgan has raised its price targets for several Bitcoin mining firms: CleanSpark, Riot Platforms, and MARA Holdings.
- These adjustments stem from an uptick in Bitcoin prices alongside enhanced profitability in mining operations.
- The bank maintains an overweight rating for CleanSpark, IREN, and Riot Platforms, while adopting a neutral stance on Cipher Mining and MARA Holdings.
Detailed Insights:
JPMorgan recently revised its price targets for Bitcoin mining companies to mirror updated market conditions following first-quarter results as well as fluctuations in Bitcoin prices and network hashrate. In its report released on Friday, the bank indicated that it has elevated its target for CleanSpark (CLSK) to $14 from $12, and for Riot Platforms (RIOT) to $14 from $13. Additionally, the target for MARA Holdings (MARA) was increased to $19 from $18.
Analyst Comments:
“Our price targets generally increased due to higher Bitcoin prices and improving mining profitability,” analysts Reginald Smith and Charles Pearce noted.
The bank mentioned that the adjustments reflect a 24% increase in its projected spot Bitcoin price and a 9% rise in its estimated network hashrate, which measures the total computing power engaged in mining and processing transactions. This metric serves as an indicator of market competition and mining difficulty.
Conclusion:
JPMorgan maintains robust ratings for certain mining entities, promoting an optimistic outlook amid rising Bitcoin mining profitability.
Read more: Bitcoin Mining Profitability Improved in May, JPMorgan Says
