JPMorgan Claims Wall Street Undervalues Bitcoin Miners by 28%, Resulting in an $8 Billion Error

Faulty Valuations in Bitcoin Mining: JPMorgan analyst Reginald L. Smith highlights that the diluted share counts for major Bitcoin mining companies are significantly understated, leading to a combined market cap miscalculation of approximately $8 billion.

Impact of Stock Issuance: Mining companies have rapidly issued stock to fund various projects, but market data has not adjusted accordingly, resulting in investors undervaluing these companies.

Diverging Fortunes in the Sector: Companies like Cipher and CleanSpark are being positively recognized due to valuable HPC contracts, while Riot and Marathon are facing reduced price targets due to weaker Bitcoin economics.

Importance of Accurate Data: Smith emphasizes that incorrect share counts lead to flawed financial ratios and valuations, which are crucial for identifying genuine value in a sector undergoing significant business model changes.