To account for the value of the miners’ electrical power assets and Bitcoin holdings, analysts at JPMorgan increased the price estimates of four Bitcoin BTC$98,688 mining stocks in research shared with Cointelegraph on December 10th.
In their research, analysts Reginald Smith and Charles Pearce identified four mining operations that will undergo upgrades: MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN). Every stock trades at a level close to or higher than its updated price objective.
Previously, the experts valued Bitcoin Miners after halving each operator’s four-year gross profit opportunity. Like MicroStrategy, we are enhancing this architecture by 1) adding the worth of each company’s power and land assets and 2) introducing a HODL premium that rewards miners for keeping Bitcoin in their balances.
MicroStrategy’s $40B Bitcoin Treasury Surpasses BTC Gains
The analysts pointed out that the software business MicroStrategy, which has become a de facto Bitcoin fund, trades at a multiple of about 2.4x to the value of its BTC treasury. According to data from Google Finance, MSTR has gained approximately 450% year-to-date as of Dec. 10, surpassing BTC’s gains of 125%. At almost $40 billion, MicroStrategy’s Bitcoin treasury is the biggest in the world.
Major Bitcoin Miners After Halving, like CleanSpark, Riot, and Marathon, follow. The Bitcointreasuries.net data service estimates that its BTC treasuries are valued at $3.9 billion, $1.1 billion, and $890 million, respectively. Businesses increasingly invest in Bitcoin, anticipating a higher price when selling it on public markets. As of December 10th, BTC holdings held by corporate treasuries exceeded $53 billion, as reported by Bitcointreasuries.net.
Bitcoin Miners Adjust to Halving with Expansions
The halving event on April 20th, reducing mining payouts from 6.25 BTC to 3.125 BTC per block, has been challenging for Bitcoin miners to adjust. In August of 2024, JPMorgan stated in a report that the second quarter was “historic,” Bitcoin Miners After Halving dealt with the fourth halving event. This event cut the daily coin mining process in half, resulting in lower margins and profitability across their coverage universe.
As a result, mining firms with more capital on hand, such as CleanSpark and Riot Platforms, “acquired other miners with turn-key facilities to increase the near-term hash rate and increase their power pipeline,” according to JPMorgan. According to the December analysis, Riot possesses the most valuable power portfolio inside our coverage universe, estimated to be over $1.3 billion.
FAQs
Which Bitcoin mining companies were included in JPMorgan's analysis?
JPMorgan's analysis included MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN), all of which are undergoing upgrades to boost their mining capacity.
What is the impact of the Bitcoin halving event on miners?
The halving event, which reduced mining payouts from 6.25 BTC to 3.125 BTC per block, has decreased the daily coin mining process, resulting in lower margins and profitability for miners. This has forced miners to expand operations and acquire more resources to maintain profitability.
How are Bitcoin miners adjusting to the halving event?
Bitcoin miners, particularly larger firms like CleanSpark and Riot Platforms, are adjusting to the halving by acquiring other miners with turn-key facilities, which helps increase their hash rate and power capacity.
How valuable is MicroStrategy’s Bitcoin treasury?
MicroStrategy’s Bitcoin treasury is valued at approximately $40 billion, making it the largest of its kind in the world, significantly surpassing the holdings of major Bitcoin miners like CleanSpark, Riot, and Marathon.
