The recent resurgence of Bitcoin’s price has attracted the attention of investors who are now seeking the next big catalyst for the cryptocurrency market. With the Bitcoin halving event approaching, J.P. Morgan analyst Reginald Smith has evaluated two prominent U.S. Bitcoin mining firms, Riot Platforms (RIOT: NSD) and Marathon Digital (MARA: NSD).
Riot Platforms:
Riot Platforms Inc (RIOT: NSD) is a vertically integrated Bitcoin miner, engaged in self-mining Bitcoin, hosting data centers for other miners, and manufacturing mining equipment. The company’s Rockdale Facility in Texas is touted as the largest singular Bitcoin mining establishment in North America. Riot Platforms recently revealed plans to expand its operations with the Corsicana Facility, expected to reach a capacity of approximately one gigawatt by the end of construction.
Although Riot Platforms experienced a decline in Bitcoin mining output in February, the company holds a substantial number of Bitcoins, currently totaling 8,067. Furthermore, Riot Platforms aims to significantly increase its operational hash rate, double its current levels, by the end of the year.
J.P. Morgan analyst, Reginald Smith, considers Riot Platforms an appealing investment due to its unique combination of industry-leading power contracts, scale, liquidity, and potential for meaningful hashrate growth. Smith upgraded Riot Platforms from Neutral to Overweight and set a price target of $15, implying potential 12-month returns of approximately 20%.
Marathon Digital:
Marathon Digital (MARA: NSD) operates using an asset-light model, relying on third-party data center hosts. However, the company is in the process of transitioning to a more vertically integrated model. Marathon Digital has recently acquired data center sites in Nebraska and Texas, giving the company greater control over resource utilization and power management.
Although Marathon Digital holds the largest market capitalization among U.S. miners and has a significant hashrate, it has experienced operational challenges that have affected its Bitcoin mining output. J.P. Morgan analyst, Reginald Smith, holds an Underweight rating on Marathon Digital shares, with a $16 price target, suggesting a potential downside of approximately 23% from the current levels.
Conclusion:
J.P. Morgan’s endorsement of Riot Platforms as the superior Bitcoin stock to buy highlights the company’s potential for significant hashrate growth and its strong fundamentals, including industry-leading power contracts and liquidity.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
