Analysts at JPMorgan have raised their price targets for four Bitcoin (BTC) mining stocks to reflect the value from their power assets and BTC holdings, according to a report shared with TinTucBitcoin on December 10.
The upgraded mining operations include MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN), according to the report by analysts Reginald Smith and Charles Pearce. Each stock is currently trading near or above the revised price targets.
"Previously, we had valued Bitcoin miners based on a four-year gross profit opportunity per mining unit," the analysts said.
> "We are expanding this framework by incorporating 1) the value of each company's land and power assets [...] and 2) a HODL premium, allowing miners to be credited for holding BTC on their balance sheet similar to MicroStrategy."
MicroStrategy (MSTR), a software company turned de facto Bitcoin fund, is trading at around a 2.4x factor to the value of its BTC stash, the analysts noted.
As of December 10, MSTR has surged nearly 450% year-to-date, outperforming BTC's 125% gain, according to Google Finance data.
MicroStrategy owns the world's largest corporate BTC treasury, worth around $40 billion.
It is followed by major Bitcoin miners, including Marathon, Riot, and CleanSpark. They hold BTC treasuries worth around $3.9 billion, $1.1 billion, and $890 million, respectively, according to BitcoinTreasuries data service.
Dozens of companies are now buying BTC in hopes of achieving a similar trading premium in the public market. In total, corporate treasuries hold over $53 billion in BTC as of December 10, according to Bitcointreasuries.net.
Bitcoin miners have struggled to adapt to the Bitcoin network's halving event on April 20, which cut the mining reward from 6.25 BTC to 3.125 BTC per Block.
"Q2 2024 will be a historic quarter as Bitcoin miners navigate the 4th Bitcoin halving, cutting the daily coin issuance (and all else equal, daily revenue opportunity) in half, leading to lower margins and profitability across our coverage," JPMorgan said in an August report.
To cope, cash-rich mining firms like Riot Platforms and CleanSpark "have acquired other miners with ready-to-use facilities to boost their hashrate in the short term and expand their power pipelines," JPMorgan said.
The December report also noted that "Riot has the most valuable power asset portfolio in our coverage, worth an estimated $1.3 billion."
*Bitcoin News Aggregated*JPMorgan Raises Price Target on Bitcoin Mining Stocks
This article is machine translated
Show original
Analysts at JPMorgan have raised their price targets for four Bitcoin (BTC) mining stocks to reflect the value from their power assets and BTC holdings, according to a report shared with TinTucBitcoin on December 10.
The upgraded mining operations include MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN), according to the report by analysts Reginald Smith and Charles Pearce. Each stock is currently trading near or above the revised price targets.
"Previously, we had valued Bitcoin miners based on a four-year gross profit opportunity per mining unit," the analysts said.
> "We are expanding this framework by incorporating 1) the value of each company's land and power assets [...] and 2) a HODL premium, allowing miners to be credited for holding BTC on their balance sheet similar to MicroStrategy."
MicroStrategy (MSTR), a software company turned de facto Bitcoin fund, is trading at around a 2.4x factor to the value of its BTC stash, the analysts noted.
As of December 10, MSTR has surged nearly 450% year-to-date, outperforming BTC's 125% gain, according to Google Finance data.
MicroStrategy owns the world's largest corporate BTC treasury, worth around $40 billion.
It is followed by major Bitcoin miners, including Marathon, Riot, and CleanSpark. They hold BTC treasuries worth around $3.9 billion, $1.1 billion, and $890 million, respectively, according to BitcoinTreasuries data service.
Dozens of companies are now buying BTC in hopes of achieving a similar trading premium in the public market. In total, corporate treasuries hold over $53 billion in BTC as of December 10, according to Bitcointreasuries.net.
Bitcoin miners have struggled to adapt to the Bitcoin network's halving event on April 20, which cut the mining reward from 6.25 BTC to 3.125 BTC per Block.
"Q2 2024 will be a historic quarter as Bitcoin miners navigate the 4th Bitcoin halving, cutting the daily coin issuance (and all else equal, daily revenue opportunity) in half, leading to lower margins and profitability across our coverage," JPMorgan said in an August report.
To cope, cash-rich mining firms like Riot Platforms and CleanSpark "have acquired other miners with ready-to-use facilities to boost their hashrate in the short term and expand their power pipelines," JPMorgan said.
The December report also noted that "Riot has the most valuable power asset portfolio in our coverage, worth an estimated $1.3 billion."
*Bitcoin News Aggregated*Sector:
Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments
Share
Relevant content
