In its latest report, JPMorgan highlighted that price targets for leading mining companies, including MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN), have been increased. These stocks are currently trading near or above their revised targets.

Expanded Evaluation Criteria for Bitcoin Miners

Previously, JPMorgan evaluated Bitcoin miners based on their four-year gross profit potential. Now, analysts have expanded their framework to include:

• The value of the companies’ land and energy assets.
• Premiums for holding Bitcoin reserves (HODL).

HODL Premium: The Advantage of Bitcoin Reserves

JPMorgan analysts noted that MicroStrategy, due to its significant BTC holdings, trades at approximately 2.4x its market value. With around $40 billion in Bitcoin reserves, MicroStrategy is a leader in this space.

Leading Bitcoin mining companies and their BTC reserves include:

• Marathon: $3.9 billion
• Riot: $1.1 billion
• CleanSpark: $890 million

Growing interest in BTC reserves has led to increased valuations in public markets. According to JPMorgan, total Bitcoin reserves on corporate balance sheets now exceed $53 billion.

Valuation of Land and Energy Assets

The second quarter of 2024 marked a pivotal period for Bitcoin miners. The April Bitcoin block reward halving reduced rewards from 6.25 BTC to 3.125 BTC, squeezing profit margins for miners.

In response, cash-rich companies like Riot Platforms and CleanSpark acquired turnkey mining facilities to increase hash rates in the short term. JPMorgan estimates Riot’s energy portfolio is worth approximately $1.3 billion.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post JPMorgan’s Commentary on Bitcoin Mining Stocks! appeared first on Coin Engineer.

The Allegations of Culper Research

Culper Research revealed its short-selling position on IREN in its July 11 report and attacked the company for inadequate funding for HPC initiatives. Culper charged IREN of engaging in a “big game” about its aspirations for high-performance computing while neglecting the required financial investment.

“IREN speaks a big game of its HPC plans but ultimately seems entirely disinterested in actually doing what it takes to compete in the space,” Culper said. The article said IREN intends to create a comparable HPC center for the same cost and has spent less than $1 million per megawatt (MW) to establish its current center. Industry professionals believe the actual cost of building an HPC-ready data center to be between $10 and $20 million per MW, Culper pointed out.

The research said IREN is unprepared for the high-stakes HPC competition, comparing its assertions to participating in the Monaco Grand Prix with a Toyota Prius. Culper also said that IREN is overpriced and need to be sold 52 to 79 percent below its present worth.

Reactions of the Market and Insider Activity

Compared to other publicly listed miners, IREN’s enterprise value relative to its hash rate on a MW basis was underlined as quite high. Given IREN’s past financial burn, Culper ascribed a value of $0 to $100 million to its crypto mining operations—which she regarded as generous.

The latest Bitcoin halving event was also mentioned in the paper as a factor aggravating miner economics as IREN’s situation is expected not to get better soon. Culper listed various breaches of IREN such as failure to achieve operations of 10 EH/s by 2023 April; the firm only managed to achieve a 5,5 EH/s operation in April 2023.

Culper also realized insider selling of the shares by brothers and co-CEOs of IREN, Daniel and Will Roberts beginning February 2024.

Previous Culper Reports

Culper has aimed at a Bitcoin miner before now. Culper published a short seller report on CleanSpark in January 2021; in response, Culper refuted the claims and declared an inquiry into the claimed origins of the claimed misrepresentations.

Market Impact of IREN

Google Finance data shows that after the article, IREN’s shares dropped by 24.5% to $10.36 on July 11 then slightly recovered to $11.20 at the close of trade. The market capitalization of the firm now comes to $2.09 billion.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Mining Firm IREN Faces Significant Losses After Short Seller Report appeared first on Coin Engineer.

Bernstein’s research unit is focusing on Bitcoin miners and their data centers, which are increasingly being used for artificial intelligence (AI). The firm said it will be issuing reports to its clients on these miners, starting with IREN and Core Scientific.

“Data center operations and energy access…”

The report, signed by Gautam Chhugani and Mahika Sapra, highlights the AI agreements and work of the two companies, stating:

“Bitcoin miners are beginning to be seen as valuable partners in terms of energy access, management, and the establishment of AI data centers. The approval process for building new energy facilities from scratch can take over 4 years. Bitcoin miners, on the other hand, can gain access to energy connections in a much shorter timeframe. This saves the market significant time.”

The analysts cited Core Scientific’s $3.5 billion deal with AI firm CoreWeave and IREN’s agreement to supply Nvidia GPUs to AI startup Poolside as the main reasons for adding the two companies to coverage.

It is worth noting that both companies were on the brink of bankruptcy in the 2022 crypto crash. Core Scientific filed for bankruptcy and underwent restructuring before resuming operations.

In addition to adding the two mining companies to coverage, Bernstein also reiterated its Bitcoin price forecasts of $200,000 by the end of 2025, $500,000 by the end of 2029, and $1 million by the end of 2033.

You can present your thoughts as comments about the topic. Moreover, you can follow us on Telegram, Twitter, and YouTube channels for the kind of news

The post Bernstein Reiterates $200K Bitcoin Price Prediction! appeared first on Coin Engineer.