JPMorgan Lifts Outlook on Bitcoin Miners as BTC Rally Fuels Sector Optimism

JPMorgan (JPM) has revised its ratings and price targets for several bitcoin mining companies following robust third-quarter results and a surge in bitcoin (BTC) prices and hashrate. The updates reflect the bank’s growing confidence in the sector’s potential amid strengthening fundamentals.

Cipher Mining (CIFR) and CleanSpark (CLSK) were upgraded to “overweight” from “neutral,” with Cipher receiving a new price target of $8 and CleanSpark’s target rising to $17 from $10.50. Marathon Digital Holdings (MARA) was moved up to “neutral” from “underweight,” with its price target significantly increased to $23 from $12.

Meanwhile, Iris Energy (IREN) was downgraded to “neutral” from “overweight,” despite its price target being raised to $15 from $9.50. Riot Platforms (RIOT) retained its “overweight” rating, with an upgraded price target of $16 from $9.50.

JPMorgan introduced a sum-of-the-parts (SOTP) valuation method, factoring in miners’ operational scale, infrastructure assets like land and power, and their bitcoin holdings to provide a more comprehensive view of their market value.

The report spurred early trading gains for the mining sector, with Cipher rising 4%, CleanSpark advancing 3.5%, MARA up 2%, RIOT gaining nearly 2%, and IREN inching up 0.4%. The bank’s positive outlook underscores growing confidence in the long-term viability of bitcoin miners amid favorable market conditions.