Analysts at JPMorgan have raised price targets for four Bitcoin mining stocks to account for the value of miners’ electrical power assets and BTC holdings, according to a Dec. 10 report shared with Cointelegraph.
The upgraded stocks include MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN). All four are trading near or above their revised price targets.
“We previously valued Bitcoin miners based on the four-year gross profit opportunity for each operator,” analysts Reginald Smith and Charles Pearce stated in the report.
“We are expanding upon this framework by incorporating 1) the value of each company’s land and power assets […] and 2) a HODL premium, which gives miners credit for holding Bitcoin on their balance like MicroStrategy.”
HODL Premiums
The report highlighted that MicroStrategy (MSTR), which has transformed into a de facto Bitcoin fund, trades at approximately 2.4x the value of its BTC treasury.
As of Dec. 10, MicroStrategy’s year-to-date gains stood at nearly 450%, far exceeding Bitcoin’s 125% growth, according to Google Finance.
MicroStrategy holds the largest corporate BTC treasury, valued at roughly $40 billion. Major Bitcoin miners Marathon, Riot, and CleanSpark follow, with BTC treasuries worth $3.9 billion, $1.1 billion, and $890 million, respectively.
Corporate treasuries collectively hold over $53 billion in BTC as of Dec. 10, according to Bitcointreasuries.net, with many companies seeking similar trading premiums.
Power Acquisitions
Bitcoin miners have faced challenges adapting to the April 20 halving event, which cut mining rewards in half.
In response, cash-rich miners like Riot Platforms and CleanSpark acquired turn-key facilities to boost hashrates and expand their power pipelines.
“Riot has the most valuable power portfolio in our coverage universe, worth ~$1.3bn, by our estimate,” the December report noted.
