JPMorgan analysts have initiated coverage of several bitcoin mining operators and discussed the state of the bitcoin mining industry. The bank favors mining operators that offer the best relative value considering factors such as existing hashrate, operational efficiency, power contracts, funded growth plans, and liquidity. CleanSpark is the bank’s top pick, while Marathon Digital, Riot Platforms, and Cipher Mining are rated underweight or neutral. The bank estimates that the four-year block reward opportunity is around $20 billion at current bitcoin prices, but profitability may be impacted by the upcoming block reward halving in the second quarter of 2024.
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