News 
Coin Information 
About us 
JPMorgan’s latest analysis has propelled Bitcoin mining stocks into the spotlight, raising targets for Marathon, Riot, and CleanSpark. Highlighting valuable power portfolios and BTC treasuries, the report signals a shift in miner valuations post-halving challenges.
JPMorgan Analysts Revise Bitcoin Mining Valuations
In a study shared with Cointelegraph on December 10th, analysts at JPMorgan increased their price forecasts for four cryptocurrencies related to Bitcoin mining. This reflects the value of the miners' power assets and Bitcoin holdings.
Researchers Reginald Smith and Charles Pearce stated in their analysis that MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN) are among the mining operations set to receive enhancements. The updated price targets for all equities are already being met or exceeded in the market.
"We previously valued Bitcoin miners based on the four-year gross profit opportunity for each operator," the analysts said.
“We are expanding upon this framework by incorporating 1) the value of each company’s land and power assets […] and 2) a HODL premium, which gives miners credit for holding Bitcoin on their balance like MicroStrategy.”
MicroStrategy and Corporate BTC Leadership
The experts pointed out that the software firm MicroStrategy (MSTR), which has become a de facto Bitcoin fund, trades at a multiple of about 2.4x to the value of its Bitcoin treasury.
Data from Google Finance shows that as of Dec. 10, MSTR has gained approximately 450% year-to-date, which is more than BTC's gains of 125%.
With a market value of almost $40 billion, MicroStrategy has the biggest corporate Bitcoin treasury in the world.
Marathon, Riot, and CleanSpark, three of the largest Bitcoin miners, follow. Their Bitcoin treasuries are valued at around $3.9 billion, $1.1 billion, and $890 million, respectively, according to the data service Bitcointreasuries.net.
Bitcoin Miners Aim to Maximize Trading Premiums
Right now, a lot of businesses are investing in Bitcoin with the expectation of making a profit from its public market trading premium. According to Bitcointreasuries.net, as of December 10th, corporate treasuries had about $53 billion worth of Bitcoin.
Mining incentives were cut in half on April 20th, from 6.25 BTC to 3.125 BTC per block, as a result of the Bitcoin network halving event. Since then, Bitcoin miners have been struggling to adjust.
In August, JPMorgan reported that the second quarter of 2024 “was a historic quarter, as Bitcoin miners navigated the 4th Bitcoin halving event, which cut the number of daily coins mined (and all else equal, the daily revenue opportunity) in half, resulting in lower margins and profitability across our coverage universe.”
Strategic Acquisitions and Riot’s Power Portfolio
For their part, Riot Platforms and CleanSpark, two mining businesses flush with cash, "acquired other miners with turn-key facilities to increase near-term hashrate and increase their power pipeline," according to JPMorgan.
"Riot has the most valuable power portfolio in our coverage universe, worth ~$1.3bn, by our estimate,” the December study stated further.
Comment 0