Bitcoin Mining Sector Is Attracting Investors: Report

Yolowire 24-Jun-2024 11:00 AM

%Bitcoin (CRYPTO: BTC) mining stocks are attracting a growing number of investors as new partnerships sweeps across the sector, says %JPMorganChase (NYSE:JPM) in a new report.

Investors have been piling into stocks of Bitcoin miners ever since privately held artificial intelligence (A.I.) company %CoreWeave signed a deal with crypto miner %CoreScientific (NASDAQ:CORZ).

JPMorgan says that the market capitalization of the 14 miners it tracks has grown by 22%, or $4 billion U.S., since the Core Scientific deal was made public in early June.

At the same time, the price of Bitcoin has slumped nearly 10% and is currently trading at $61,000 U.S.

Core Scientific has signed a deal to sell 200 megawatts (MW) of energy to CoreWeave to help power it’s A.I. operations.

News of the deal triggered a re-rating of the Bitcoin mining sector as investors react positively to the partnership.

JPMorgan adds that %IrisEnergy (NASDAQ:IREN) is well-positioned to take advantage of the current opportunity for Bitcoin miners to help power A.I. operations, noting that the company has excess power capacity.

Iris Energy has a track record of building and delivering high-quality data centres on time and has access to a decent amount of excess power that it could sell to A.I. operators, says the bank.

JPMorgan says other Bitcoin miners that investors should keep an eye on in coming months include %RiotPlatforms (NASDAQ:RIOT), %MarathonDigital (NASDAQ:MARA), and CleanSpark (CLSK), all of which have excess energy that they could sell to power-hungry A.I. developers.

The stock of JPMorgan Chase has risen 41% in the last 12 months to trade at $196.30 U.S. per share.