JPMorgan has upped price projections for major Bitcoin mining companies, indicating their increasing market worth. The recent modifications are aimed at companies such as Cipher Mining, CleanSpark, Riot Platforms, and MARA Holdings, which are motivated by growing Bitcoin reserves and land/power assets.
We increased Cipher Mining’s price objective to $8 and CleanSpark’s aim from $10.50 to $17. MARA Holdings’ target price also increased significantly, from $12 to $23. Riot Platforms has raised its price objective from $9.50 to $16, demonstrating a heightened level of confidence in the company.
This upward movement in valuation is partly due to JPMorgan’s new sum-of-the-parts valuation model, which takes into account the miners’ operational assets, land, power holdings, and Bitcoin holdings. JPMorgan’s new sum-of-the-parts valuation model, which considers the operational assets, land, power holdings, and Bitcoin holdings of many Bitcoin miners, aims to more accurately reflect the underlying value of these companies.
As Bitcoin prices rise and mining incentives fluctuate, these revised targets demonstrate the growing relevance of Bitcoin holdings in deciding the value of mining operations. This move indicates a more hopeful view for Bitcoin miners, with Bitcoin reserves emerging as a significant asset driving their market potential.
