- The bank reduced its CLSK, IREN, MARA and RIOT price targets to account for second-quarter results and changes in the price of bitcoin and the network hashrate.
- JPMorgan prefers Iren and Riot Platforms, and says recent underperformance in these stocks presents a buying opportunity.
- The bank estimates the notional value of the remaining bitcoin to be produced by miners at around $74 billion.
The bank adjusted downward its estimated prices for certain mining companies it follows, taking into account their second-quarter earnings and fluctuations in both the price of Bitcoin and the total computing power utilized for mining and transaction processing within the Bitcoin network (referred to as hashrate). In simpler terms, the bank revised the predicted costs for specific mining businesses they track based on their Q2 performance and changes in both the Bitcoin market value and the collective processing power used across the Bitcoin network.
JPMorgan cut its CleanSpark (CLSK) price target to $10.50 from $12.50 while maintaining its neutral rating on the shares. It reduced the Iren (IREN) price target to $9.50 from $11 and kept its overweight rating. Underweight-rated Marathon Digital’s (MARA) price objective was lowered to $12 from $14, and overweight-rated Riot Platforms’ (RIOT) price objective was trimmed to $9.50 from $12.
According to the report, it’s projected that the potential earnings from Bitcoin block rewards over a four-year period could amount to approximately $37 billion. This is a decrease of 19% compared to early June, but it still represents an increase of 85% compared to the same period last year.
The bank favors Iren and Riot’s stocks and suggests that the recent poor performance offers a good chance for investors to purchase these stocks at lower prices.
In the first half of the year, Riot’s performance has lagged behind the sector average, primarily because of operational issues. However, JPMorgan anticipates an improvement in market sentiment and a rise in stock prices over the next few months, driven by improved uptime and productivity figures.
In the past few weeks, Iren’s trading value has decreased following the announcement of significant increases in energy expenses in July, which led to losses from hedging. However, JPMorgan believes that these mistakes can be corrected and presents an attractive prospect for purchasing.
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2024-08-23 15:06