Orhan 
Global financial giant JPMorgan has updated its price targets for four major Bitcoin mining stocks, reflecting the value of their energy assets and BTC reserves.
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.
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