Major Bitcoin Miners Pivot to HPC Spurs JPMorgan Upgrades
JPMorgan raised its ratings on two US bitcoin miners—Cipher Mining (CIFR) and CleanSpark (CLSK)—to overweight from neutral, citing a surge in high-performance computing (HPC) partnerships and cloud-colocation deals. The bank lifted Cipher’s price target to $18 from $12, while CleanSpark’s stock jumped in premarket trading. In contrast, price targets for MARA Holdings (MARA) and Riot Platforms (RIOT) were cut amid lower bitcoin forecasts and share dilution concerns. Since late September, miners have secured over $19 billion in contracted revenue across 600 megawatts of critical IT capacity, driven by partnerships with AWS, Fluidstack and others. JPMorgan now projects roughly 1.7 gigawatts of IT capacity by late 2026. Analysts assign $8–17 million equity value per megawatt for colocation and up to $19 million for integrated cloud, reflecting stronger cash-flow visibility. With Cipher down 45% from recent highs and CleanSpark poised to add 200 MW at its new Texas site, traders see compelling entry points. The report highlights how bitcoin miners are pivoting to HPC services, reshaping sector valuation and long-term growth prospects.
Bullish
JPMorgan’s upgrades signal growing confidence in bitcoin miners’ transition to HPC services, marking a bullish development for the sector. By securing long-term cloud and colocation contracts, miners like Cipher and CleanSpark reduce their reliance on volatile bitcoin prices and gain clearer cash-flow visibility. Historically, mining firms that diversified into hosting and commercial IT services have seen sustained multiple expansions as revenue streams stabilize. In the short term, the upgrades and raised price targets are likely to spur buying interest and upward price momentum in miner equities. Over the long term, the shift to HPC partnerships could underpin more resilient earnings, support higher valuation multiples and further institutional investment, reinforcing a bullish outlook for bitcoin miners.