Bitcoin Mining Industry Is at a ‘Crucible Moment,’ JPMorgan Says – Yahoo Finance


The bitcoin (BTC) mining industry is at a crucible moment, as the approval of a spot BTC exchange-traded-fund (ETF) could catalyze a rally against a backdrop of record hashrates and the impending block reward halving that threaten the industry's revenues and profitability, JPMorgan (JPM) said in a research report Wednesday.
The bank favors mining operators that offer the best relative value in light of their “existing hashrate, operational efficiency, power contracts, funded growth plans and liquidity,” analysts Reginald Smith and Charles Pearce wrote.
Read more: Bitcoin Halving Is Coming and Only the Most Efficient Miners Will Survive
JPMorgan initiates coverage of CleanSpark (CLSK) with an overweight rating and a price target of $5.50; Marathon Digital (MARA) at underweight with a $5 target; Riot Platforms (RIOT) at underweight with a $6.50 target, and Cipher Mining (CIFR) at neutral. The bank also upgraded Iris Energy (IREN) to overweight from neutral.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether or not to approve a spot bitcoin ETF until this month. The crypto market is hopeful that any approval will trigger a flood of mainstream money into the sector.
CleanSpark is the bank’s top pick, offering the best balance of “scale, growth potential, power costs and relative value.”
The analysts said that Marathon is the largest mining operator but has the highest energy costs and lowest margins. Meanwhile, Riot has relatively low power costs and liquidity but is the most expensive stock in their coverage universe.
Among the peers, Cipher Mining has the lowest power costs but is “growth constrained,” the report noted.
The bank estimates the four-year block reward opportunity at around $20 billion at current bitcoin prices. However, the looming block reward halving, expected in the second quarter of 2024, could impact profitability. It estimates that as much as 20% of the network hashrate is at risk from halving as less efficient mining computers are decommissioned.
Read more: Listed Bitcoin Miners Could be the Ultimate Bet for 2024: Matrixport
The Hamas terrorist organization and its affiliates have received millions in cryptocurrency donations, according to a report by the Wall Street Journal based on data from forensics firm Elliptic and Tel Aviv software company BitOK. Palestinian Islamic Jihad received $93 million in crypto between August 2021 and June 2023, Elliptic said. Hamas received about $41 million in the same timeframe, the report read.
As federal student loan repayments resume following a pause during the COVID-19 pandemic, a Nationwide Insurance survey reveals two-thirds of workers believe the return of payments will derail their retirement savings. The survey spotlights broad financial pressures spanning generations. Most borrowers agree reinstating loan payments has already destabilized their finances and imperiled retirement planning. Nearly […] The post Return to Student Loan Payments Affects Long-Term Retirement Outlook,
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The continued accumulation shows tightening supply and a widespread reluctance to transact, according to Glassnode.
Borderless by design, these modern digital tokens can make cross-border commerce much cheaper and easier.
JPMorgan Chase & Co. (JPM) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
The crypto’s technological breakthrough was not as a superior payment method but as a superior form of money, the report said.
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Cathie Wood’s investing philosophy is based on unwavering conviction in a portfolio heavily favoring high-growth names with disruptive qualities. But against an economic backdrop of soaring inflation and high interest rates, that strategy wilted during 2021 and 2022. However, Wood’s Ark Invest’s flagship ARKK fund appears to have got its mojo back this year, and looking ahead to the post-high rate landscape, that is something Wood expects will continue. “The fear of rising interest rates hurt ou
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Cramer in 2021 said he sold most of his bitcoin holdings.
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