JPMorgan Downgrades Bitcoin Miner CleanSpark, Upgrades Riot

JPMorgan (JPM) is tweaking its price targets and ratings for bitcoin (BTC) mining stocks to reflect the recent rally in the leading cryptocurrency, the network hashrate, and other company-specific news, the bank said in a research report Friday.

Since the bank last refreshed its price targets on these stocks, the bitcoin price has risen 12%, and the network hashrate has increased by 2%. Therefore, it lifts its spot BTC price assumption to $44,000 from $38,000 and its baseline network hashrate assumption to 485 EH/s from 475 EH/s.

The bank cut its rating on CleanSpark (CLSK) to neutral from overweight and reduced its price target on the stock to $8 from $9, noting that the shares have gained more than 130% in the last month and so are now properly valued.

Riot Platforms (RIOT) has been upgraded to neutral from underweight with an increased price target of $12 from $8.

JPMorgan remains overweight Iris Energy (IREN), its top pick in the sector, and raises its price target to $9.50 from $9.

The bank maintains its underweight rating on Marathon Digital (MARA) but raises its price target to $8.50 from $8.

“At current prices, we size the four-year block reward opportunity at ~$31 billion, up 11% from December 1 and 105% y/y,” analysts Reginald Smith and Charles Pearce wrote.