In a research report published Monday, JPMorgan (JPM) said the Bitcoin mining sector is attracting a strong wave of interest from the following investors agree of Core Scientific (CORZ) with artificial intelligence (AI) company CoreWeave.
JPM noted that since the announcement of the partnership, the total market capitalization of the 14 miners it tracks has increased by 22% – or $4 billion compared to Bitcoin’s 7% decline and 3% increase. % of the S&P 500 stock index. Core Scientific said it signed a 200 megawatt (MW) artificial intelligence deal with the cloud computing company earlier this month. News of this deal has caused analysts to reassess the Bitcoin mining sector when investors react positively.
According to analysts Reginald Smith and Charles Pearce, this reflects “alternative (and potentially more cumulative) use cases for mining facilities as well as the scarcity and value of the capacity access to electricity”. The Core Scientific agreement “endorses and will promote miners to diversify into high-performance computing (HPC) programs.”
Iris Energy (IREN) is best positioned to take advantage of this opportunity, the report said, noting that the company has excess energy capacity and is not tied to Bitcoin mining. The bank noted that Iris Energy was early on the HPC trend and is running graphics processing units (GPUs) at its facilities. The company has a track record of building and delivering high-quality data centers on time and has access to a fair amount of power.
According to JPM, Cipher Mining (IFR) has attractive power costs and a long operating history, but has a smaller power pipeline than Iris Energy.
Riot Platforms (RIO), also rated highly by JPMorgan, “remains completely committed to Bitcoin mining” and has not shown much interest in HPC despite its abundant power capacity.
Marathon Digital (MARA) is ranked low and CleanSpark (CLSK) is ranked average as “most expensive on a business-to-electrochemical capacity basis,” the report said.
Itadori
According to Coindesk
