JPMorgan increases targets for Bitcoin mining stocks
JPMorgan analysts have raised price targets for four Bitcoin (CRYPTO:BTC) mining stocks, reflecting the value of their electrical power assets and Bitcoin holdings.
In a report dated December 10, the analysts identified Marathon Digital Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and Iris Energy (IREN) as the companies receiving target increases.
These stocks are currently trading near or above their revised price targets.
“We previously valued Bitcoin miners based on the four-year gross profit opportunity for each operator,” the analysts explained.
They are now expanding this framework to include the value of each company’s land and power assets, as well as a “HODL premium,” which credits miners for holding Bitcoin on their balance sheets similar to MicroStrategy.
MicroStrategy, which has become synonymous with corporate Bitcoin investment, trades at approximately 2.4 times the value of its Bitcoin treasury.
As of December 10, MicroStrategy's stock had surged nearly 450% year-to-date, significantly outperforming Bitcoin's 125% increase during the same period.
MicroStrategy holds the largest corporate Bitcoin treasury, valued at around $40 billion, followed by Marathon with $3.9 billion, Riot with $1.1 billion, and CleanSpark with $890 million, according to Bitcointreasuries.net data.
Many companies are now purchasing Bitcoin in hopes of achieving similar trading premiums in public markets.
As of December 10, corporate treasuries collectively hold over $53 billion in Bitcoin.
In addition to these developments, Bitcoin miners have faced challenges due to the recent halving event that reduced mining rewards from 6.25 BTC to 3.125 BTC per block.
JPMorgan noted that cash-rich companies like Riot and CleanSpark have responded by acquiring other miners to enhance their operational capacity and power resources.
The report highlighted that Riot possesses the most valuable power portfolio among the companies analyzed, estimated at around $1.3 billion.
At the time of reporting, the Bitcoin price was $97,303.32.
