JPMorgan: Bitcoin Miners Shift to AI, Yet Could Be Overpriced
JPMorgan's Upgrades and Downgrades: JPMorgan upgraded Cipher Mining and CleanSpark to "Overweight" while cutting targets for Marathon Digital (MARA) and Riot Platforms (RIOT) due to concerns over shareholder dilution.
Shareholder Dilution Risks: The report indicates that mining firms may have 20%-33% more shares than currently reported, leading to potential overvaluation of these companies.
Shift to AI Computing: Bitcoin miners are diversifying their operations towards high-performance computing for AI, with Cipher Mining planning significant infrastructure expansion and CleanSpark enhancing its Texas datacenter.
Market Reactions: The investment bank's analysis reflects a growing recognition of the risks and opportunities in the mining sector, particularly as firms adapt to AI demand while facing capital challenges.
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