Wall Street Bank JPMorgan (JPM) updated its estimates following the Bitcoin (BTC) minor price target and fourth quarter 2024 results, explaining changes to Bitcoin prices and network hashrates.
JPMorgan has raised its top pick in the sector (Iren) from neutral to overweight, reducing its price target from $15 to $12. Stocks were up 2.7% at $7.23 in early trade.
Crypto Mining (CIFR) was downgraded to neutral after gaining weight, and banks withdrew their $8 price target. The stock fell 3% to $3.10.
The bank has repeatedly rated overweight on riot platforms (riots) and CleanSpark (CLSK) and reduced their respective price targets to $13 and $12. Riot slipped 0.5% to $7.82. CleanSpark went from 0.6% to $8.15.
It has repeatedly rated neutrality at Mara Holdings (Mara), lowering the company’s price target from $23 to $18. Stocks rose 0.5% to $13.14.
Minor price targets were reduced from 19% to 29% to reflect a 10% reduction in the bank’s Bitcoin price assumption and an 80% increase in the bank’s network hashrate growth estimate.
The total market capitalization of the five mining stocks covered by the bank prevents a decline of more than 20% per year compared to an 11% decline in Bitcoin prices, the report said.
Mining inventory is under pressure as high-performance computing (HPC) transactions take longer than expected, and mining economics has deteriorated.
Pullbacks of these stocks provide an attractive entry point for investors, the report added.
Read more: Bitcoin Mining Economics weakened in February: JPMorgan
