Core Insights - JPMorgan upgraded Bitcoin miners Cipher Mining and CleanSpark to Overweight due to increased confidence in miners' colocation strategies driven by high-performance computing agreements [1][3] Group 1: Valuation Changes - A megawatt of critical IT colocation capacity is now valued between $8 million to $17 million, up from $4 million to $9 million [2] - A megawatt of critical IT cloud capacity could be worth as much as $19 million, compared to $12 million previously [2] - Cipher received a new price target of $18 for December 2026, up from $12, while CleanSpark's target remains at $14 [3] Group 2: Capacity Projections - Cipher could reach about 480 MW of critical IT capacity by 2026, reflecting 64 percent of its approved power portfolio [4] - CleanSpark's outlook includes assumptions for a colocation contract at its 285 MW site in Texas by late 2026 [4] - JPMorgan assigned a blended valuation of $14 million per MW for Cipher and $13 million per MW for CleanSpark [4] Group 3: Other Company Targets - IREN's price target was raised to $39 from $28, while Riot Platforms' target was lowered to $17 from $19 and MARA Holdings' target to $13 from $20 [5] - IREN's target is based on a critical IT valuation of $17 million per MW and an assumed 660 MW of HPC load by 2026 [5] Group 4: Share Count Adjustments - JPMorgan's diluted share-count estimates are 20 percent to 33 percent higher than Bloomberg figures due to factors like at-the-market issuance programs and convertible-note dilution [6] - Cipher's diluted share count was revised to 480 million, and CleanSpark's estimate rose to 334 million [7] - Combined diluted market capitalizations for Cipher, CleanSpark, IREN, Riot, and MARA were about $8 billion higher than indicated using Bloomberg share-count data [7] Group 5: Market Conditions - Bitcoin's decline of about 17 percent since the last update led to revisions in mining-related assumptions [8] - The updated baseline network hashrate is now 1,080 EH/s, with daily revenue per EH/s at $39,600 [8] - Mining businesses were valued using a range of $1 million to $2 million per MW based on cost structures and expected post-halving margins [8]