JPMorgan Lowers Target Prices for Bitcoin Mining Companies...Down by up to 29%

Global investment bank (IB) JPMorgan has lowered target prices across the board for Bitcoin (BTC) mining companies.

According to CoinDesk on the 13th, JPMorgan adjusted target prices and investment opinions for Bitcoin mining companies listed on the US stock market. Specifically, Iris Energy's (IREN) target price was lowered from $15 to $12. The investment opinion was upgraded from 'neutral' to 'overweight'.

The previous target price for Cipher Mining ($8) was withdrawn. The investment opinion was also downgraded from 'overweight' to 'neutral'. For Riot Platforms and CleanSpark, the investment opinion remained 'overweight', but target prices were lowered to $13 and $12 respectively.

Marathon Holdings' target price was also lowered from $23 to $18. JPMorgan maintained a 'neutral' investment opinion for Marathon Holdings. CoinDesk explained, "JPMorgan lowered target prices for Bitcoin mining companies by 19-29%," adding that "this is the result of lowering Bitcoin price forecasts by 10% and increasing network hashrate growth projections by 80%."

JPMorgan pointed out that the total market capitalization of the five Bitcoin mining companies under analysis has fallen by more than 20% this year. JPMorgan analyzed, "This is a larger drop than Bitcoin's 11% price decline," and "mining companies' stock prices are under (downward) pressure as mining economics deteriorate." They added, "(However) this stock price adjustment could present an attractive entry opportunity for investors."