JPMorgan Raises Price Targets for Bitcoin Miners Due to Improved Industry Economics
JPMorgan has increased the price targets for several bitcoin mining companies. This decision stems from the companies' first-quarter results and updated forecasts for bitcoin's price and the network's hashrate.
In a report released on Friday, the bank raised its price target for CleanSpark (CLSK) from $12 to $14, for Riot Platforms (RIOT) from $13 to $14, and for MARA Holdings (MARA) from $18 to $19.
According to analysts Reginald Smith and Charles Pearce, "Our price targets generally increased due to higher bitcoin prices and improving mining profitability."
JPMorgan explained that these adjustments reflect a 24% increase in the bank's spot bitcoin assumption and a 9% rise in its network hashrate estimate. The hashrate represents the total computational power used to mine and process transactions on a proof-of-work blockchain, serving as an indicator of industry competition and mining difficulty.
Finally, JPMorgan reiterated its "overweight" rating for CleanSpark, IREN (IREN), and Riot, while maintaining a "neutral" rating for Cipher Mining (CIFR) and MARA.
