JPMorgan Upgrades MARA Holdings as Bitcoin Miners Face Mixed Outlook

What to Know

• JPMorgan has upgraded MARA Holdings to overweight, raising its price target to $22, indicating a 30% upside from last week’s close.
• IREN and Riot Platforms were downgraded to neutral, although both received higher price targets due to improving bitcoin prices.
• The bank now prefers pure-play bitcoin miners over those with exposure to high-performance computing (HPC).
• CleanSpark (CLSK) remains JPMorgan’s top pick, with a price target raised to $15.
• The update reflects the latest Q2 earnings, bitcoin network hashrate, and the surging BTC price, now around $118,700.

JPMorgan Adjusts Ratings on Bitcoin Miners Amid BTC Rally

JPMorgan, one of Wall Street’s leading investment banks, revised its outlook on the bitcoin mining sector following the latest round of second-quarter earnings reports and sharp changes in bitcoin market dynamics. With BTC climbing past the $118,000 mark, analysts have responded by rebalancing miner ratings, favoring those better positioned to ride the wave of higher prices and improved mining margins.

The biggest beneficiary of this reevaluation is MARA Holdings, which has been upgraded to overweight. Its price target was bumped from $19 to $22, reflecting confidence in its operational scale and exposure to rising bitcoin prices. The current target suggests an upside of about 30% based on MARA’s recent close just above $17.

IREN and Riot Downgraded Despite Higher Price Targets

While MARA received a vote of confidence, not all miners fared equally well in JPMorgan’s updated outlook. Both IREN and Riot Platforms (RIOT) were downgraded to neutral from overweight. However, their price targets were still raised — IREN’s from $12 to $16, and Riot’s from $14 to $15 — indicating that although profitability has improved, relative valuation or risk factors may limit further upside.

This suggests a more cautious stance from JPMorgan toward companies that might not benefit as strongly from bitcoin’s price rally, or that carry additional exposure to non-mining sectors such as HPC (high-performance computing).

CleanSpark Maintains Top Spot with Bullish Outlook

CleanSpark (CLSK) continues to hold JPMorgan’s top spot among bitcoin miners. Already rated overweight, CLSK saw its price target raised from $14 to $15, which also implies roughly 30% upside from its recent trading level near $12.

CLSK has consistently demonstrated operational growth, competitive cost structures, and an efficient approach to scaling — factors that now play in its favor as bitcoin’s price and mining rewards improve.

Cipher Mining Gets a Fresh Target

Although Cipher Mining (CIFR) remains unrated by JPMorgan, the bank has now set a price objective of $6, signaling that even miners outside its formal coverage are being re-evaluated in light of market dynamics.

Cipher has recently expanded its operations and, as a pure-play bitcoin miner, appears to be better aligned with the narrative JPMorgan now champions.

A Strategic Shift: Pure-Play Bitcoin Miners Now Preferred

JPMorgan’s note also highlighted a strategic pivot in how it views the mining sector. In previous cycles, diversified miners with high-performance computing capabilities may have been favored. However, the current trend, according to the bank, shows pure-play bitcoin miners — those solely focused on BTC mining — offering better relative value and stronger correlation to rising bitcoin prices.

This signals a changing institutional sentiment toward miners with cleaner, simpler business models directly tied to bitcoin’s price movements.

Analysts’ Take on the Bitcoin Mining Landscape

JPMorgan analysts Reginald Smith and Charles Pearce authored the latest update, stating that their revised estimates were based on Q2 earnings, network hashrate dynamics, and BTC price action. They emphasized that miner price targets were lifted to reflect better profitability metrics and that bitcoin’s climb is creating a more favorable environment for core mining operations.

With bitcoin trading near $118,700, the backdrop for miners is rapidly improving, and JPMorgan’s reshuffling of ratings reflects a more fine-tuned approach to identifying outperformers in a changing market.

Q&A: JPMorgan’s Bitcoin Mining Update

Why did JPMorgan upgrade MARA Holdings?

The bank raised MARA to overweight due to its strong positioning in the pure-play mining space and its sensitivity to rising bitcoin prices. Its improved earnings and operational efficiency added to the bullish case.

Why were IREN and Riot downgraded?

Despite higher bitcoin prices, JPMorgan sees limited relative value in IREN and Riot compared to peers. Their exposure to other sectors, like HPC, may reduce their correlation with bitcoin’s price movements.

What does overweight mean in JPMorgan’s ratings?

“Overweight” implies that JPMorgan expects the stock to outperform its sector or the broader market over the next 6–12 months.

What are the new price targets?

• MARA: $22 (up from $19)
• IREN: $16 (up from $12)
• Riot: $15 (up from $14)
• CleanSpark: $15 (up from $14)
• Cipher Mining: $6 (new target)

What is the preferred type of miner now?

JPMorgan now favors pure-play bitcoin miners, which focus solely on BTC mining and avoid exposure to unrelated computing segments.

How does bitcoin’s price affect miners?

As bitcoin’s price increases, miner revenues improve significantly since block rewards are denominated in BTC. Higher prices also help offset rising network difficulty and energy costs.

Why is CleanSpark JPMorgan’s top pick?

CleanSpark offers a balance of scale, efficiency, and growth, making it highly responsive to favorable bitcoin market conditions. Its lean operation and expansion strategy appeal to institutional investors.

Read more: What is Miner Extractable Value (MEV) and How Does It Impact Blockchain Networks?