JPMorgan (JPM) is tweaking its price targets and ratings for bitcoin (BTC) mining stocks to reflect the recent rally in the leading cryptocurrency, the network hashrate, and other company-specific news, the bank said in a research report Friday.
Since the bank last refreshed its price targets on these stocks, the bitcoin price has risen 12%, and the network hashrate has increased by 2%. Therefore, it lifts its spot BTC price assumption to $44,000 from $38,000 and its baseline network hashrate assumption to 485 EH/s from 475 EH/s.
The bank cut its rating on CleanSpark (CLSK) to neutral from overweight and reduced its price target on the stock to $8 from $9, noting that the shares have gained more than 130% in the last month and so are now properly valued.
Riot Platforms (RIOT) has been upgraded to neutral from underweight with an increased price target of $12 from $8.
JPMorgan remains overweight Iris Energy (IREN), its top pick in the sector, and raises its price target to $9.50 from $9.
The bank maintains its underweight rating on Marathon Digital (MARA) but raises its price target to $8.50 from $8.
“At current prices, we size the four-year block reward opportunity at ~$31 billion, up 11% from December 1 and 105% y/y,” analysts Reginald Smith and Charles Pearce wrote.
Bitcoin Miner CleanSpark Cut to Neutral, Riot Platforms Upgraded to Neutral: JPMorgan
The four-year block reward revenue opportunity is about $31 billion at current bitcoin prices, the report said.
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Will Canny is CoinDesk's finance reporter.