Bitcoin Miners CleanSpark, Cipher Mining Win JPMorgan Support For Growth, Efficiency Edge

JPMorgan doesn't often issue upgrades to two bitcoin miners at once, but that's exactly what happened on Tuesday with CleanSpark Inc (NASDAQ:CLSK) and Cipher Mining Inc (NASDAQ:CIFR).

The bank's analyst Reginald L. Smith made the call to boost both stocks from Neutral to Overweight, and here's why: the market has been overly punishing them despite the surging Bitcoin (CRYPTO: BTC) price, creating a golden opportunity for investors looking to capitalize on the ongoing crypto-mining boom.

Cipher Mining: Poised For Explosive Growth

For Cipher Mining, it's all about power – literally. The company is expanding its electrical infrastructure and data centers in Texas, with plans to bring on a massive 300MW greenfield site by 2025. Cipher already benefits from one of the most attractive power contracts in the industry, coming in under $0.03 per kWh.

JPMorgan's Smith sees Cipher as the best-positioned miner in the market right now. With its hash rate set to grow more than 190% by 2025 and active power capacity looking to expand by over 90%, Cipher's unique power advantage and rapid growth make it a must-have for crypto investors. Smith has set a price target of $8.00 by December 2025, reflecting a potential 25% upside.

Read Also: Bitcoin Miner CleanSpark Has ‘Solid, Albeit Relatively Quiet’ Quarter, Ready For Growth, Says Analyst

CleanSpark: M&A, Sustainable Energy Meet Bitcoin Mining

Meanwhile, CleanSpark isn't lagging far behind. Operating more than 30 EH/s, CleanSpark is among the top three largest publicly listed Bitcoin miners. While the stock has only increased a meager 1% over the past month (compared to a 24% increase in bitcoin prices), JPMorgan is betting that now is the time to jump in.

CleanSpark's blend of microgrid construction, sustainable energy expertise, and proven track record in the mining space makes it a standout player.

The analyst raised the company's 2025 price target to $17, suggesting 25% upside from current levels. The revised target factors in CleanSpark's power portfolio, its substantial HODL balance, and the ongoing ramp-up in mining capacity.

Bitcoin Boom Meets Mining Potential

JPMorgan's upgraded calls on CLSK and CIFR come at a time when Bitcoin mining stocks are feeling the heat of fluctuating market sentiment.

With Bitcoin's price rising sharply by 24% recently, both CleanSpark and Cipher Mining have underperformed the broader market of their mining peers. CLSK shares are up only 23% year-to-date, while CIFR has increased 54%—both well behind Bitcoin's 125% surge.

But JPMorgan sees this as an opportunity, and the upgrades come with bullish price targets that signal room for significant growth as both companies ramp up their operations.

With Cipher poised to secure a colocation deal and CleanSpark continuing to build on its impressive capabilities, investors might want to take notice. As Bitcoin's dominance continues to expand, these miners could see substantial upside in the years to come.

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Image created using artificial intelligence via Midjourney.