JPMorgan Upgrades Bitcoin Miner IREN to Overweight, Downgrades Cipher Mining to Neutral

Key Points to Know:

• JPMorgan lowered price targets for bitcoin miners in its coverage by 19%-29%.
• The bank upgraded IREN to overweight from neutral and downgraded Cipher Mining to neutral from overweight.
• JPMorgan maintained its overweight rating on Riot Platforms and CleanSpark, and its neutral recommendation on MARA Holdings.

Wall Street bank JPMorgan (JPM) revised its price targets and estimates for bitcoin (BTC) miners following fourth-quarter 2024 results and adjustments for changes in bitcoin prices and network hashrate.

JPMorgan upgraded IREN (IREN), its top pick in the sector, to overweight from neutral, while lowering its price target to $12 from $15. The shares rose 2.7%, reaching $7.23 in early trading.

Cipher Mining (CIFR) was downgraded to neutral from overweight, and JPMorgan withdrew its $8 price target. The stock dropped 3% to $3.10.

The bank maintained its overweight ratings on Riot Platforms (RIOT) and CleanSpark (CLSK), while lowering their price targets to $13 and $12, respectively. Riot decreased by 0.5% to $7.82, and CleanSpark increased by 0.6% to $8.15.

JPMorgan also kept its neutral rating on MARA Holdings (MARA) and reduced its price target to $18 from $23. The shares rose 0.5% to $13.14.

The bank lowered its price targets for miners by 19%-29% to account for a 10% reduction in its bitcoin price assumption and an 80% increase in its network hashrate growth estimate.

The total market capitalization of the five mining stocks covered by the bank has fallen more than 20% year-to-date, compared to an 11% decline in the bitcoin price.

Mining stocks have faced pressure as high-performance computing (HPC) deals have taken longer than expected to materialize, and mining economics have worsened, according to the bank.

However, the pullback in these stocks presents an attractive entry point for investors, the report concluded.