JPMorgan Downgrades Bitcoin Miners Price Targets

JPMorgan has lowered price targets for Bitcoin mining companies, taking into account their second-quarter performance and any recent announcements such as improvements in fleet efficiency and hashrate goals.

The decrease in price targets is primarily due to the recent decline in the price of Bitcoin, resulting in a revision of the estimated price from $68,000 to $60,000, according to a report from analysts at the investment bank released on Friday.

Furthermore, the base hashrate assumption has been revised from 600 exahash per second to 615 EH/s. These adjustments have led to a decrease in projected gross profits per EH/s for the mining companies, as stated in the report.

“Our lowered price targets are a result of factors such as share count dilution, lower Bitcoin prices, and an increase in network hashrate. We continue to favor IREN, our top pick, and remain cautious on RIOT, while recommending against MARA and maintaining a neutral stance on CIFR and CLSK,” explained JP Morgan analysts Reginald L. Smith and Charles Pearce, referring to publicly-traded mining companies Iris Energy, Riot Platforms, Marathon Digital, Cipher Mining, and CleanSpark, respectively.