The rise in the price of Bitcoin and the network’s increasing hash rate have led to improvements in Wall Street’s valuations of crypto-related stocks.
JPMorgan has been bullish on Bitcoin mining stocks like Cipher Mining (CIFR) and CleanSpark (CLSK) following their Q3 results, while analysts have also set positive targets for companies like Coinbase and Bitdeer.
“Overweight” rating for Cipher Mining and CleanSpark
JPMorgan upgraded Cipher Mining and CleanSpark shares to overweight from neutral. The bank set a new target price for Cipher Mining, valuing the company at $8 a share, and raised the target price for CleanSpark to $17 from the previous $10.50.
Target prices of MARA and RIOT increased
MARA Holdings (MARA) was upgraded from “underweight” to “neutral,” while its target price was raised from $12 to $23. Riot Platforms (RIOT) shares were upgraded from their current “overweight” ratings, while their target price was raised from $9.50 to $16.
New valuation method: SOTP model
JPMorgan has announced that it is using a new “sum of the parts” (SOTP) valuation framework when evaluating Bitcoin mining companies. The model takes into account companies’ mining operations, their land and energy portfolios, as well as their Bitcoin holdings on their balance sheets. This comprehensive approach offers the opportunity to assess companies’ market value in more detail.
Stay tuned for new information.
