Analysts at JPMorgan have adjusted their price targets for four Bitcoin mining stocks, with the new price reaching $97,604, reflecting the value from the electricity assets and the amount of BTC these companies own, according to a Dec. 10 report.

Mining companies with adjusted price targets include MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT) and IREN (IREN). Each stock is now trading near or above its raised price target.

"Previously, we assessed Bitcoin miners based on four-year gross profit opportunity for each operator," analysts said.

"We are now expanding this approach by adding 1) the land and power asset value of each company […] and 2) a HODL premium, valuing miners holding Bitcoin on their balance sheets, similar to how MicroStrategy does."

Source: JPMorgan

HODL premium

MicroStrategy (MSTR), the pioneering company adopting the Bitcoin Treasury strategy, is currently trading at approximately 2.4 times the value of its BTC holdings, according to analysts.

As of December 10, MSTR's stock price has increased nearly 450% this year, surpassing BTC's growth of 125%.

MicroStrategy currently holds the largest BTC treasury among public companies, valued at about $40 billion. Other large miners like Marathon, Riot, and CleanSpark follow with BTC treasuries valued at approximately $3.9 billion, $1.1 billion, and $890 million, respectively, according to data from Bitcointreasuries.net.

Currently, dozens of companies are buying BTC with the expectation of earning a similar trading premium in the public market. In total, the BTC treasuries of these companies hold over $53 billion as of December 10, according to data from Bitcointreasuries.net.

Top 10 BTC treasuries of publicly listed companies | Source: Bitcointreasuries.net

Power asset acquisition strategy

Bitcoin miners have faced many challenges in adapting to Bitcoin's halving event on April 20, which cut mining rewards from 6.25 BTC to 3.125 BTC per block.

Q2 2024 is considered a historic turning point, as Bitcoin miners face the fourth halving event, halving the number of BTC mined daily, leading to reduced profit margins and widespread profitability challenges, according to a JPMorgan report in August.

To cope, strong-capitalized mining companies like Riot Platforms and CleanSpark have made acquisitions of other miners with existing infrastructure to enhance hashing capability and expand short-term power supply.

JPMorgan's December report also indicates that Riot holds the most valuable power asset portfolio within their coverage, estimated to be worth about $1.3 billion.

Source: https://tapchibitcoin.io/jpmorgan-nang-muc-tieu-gia-cho-cac-co-phieu-khai-thac-bitcoin.html