JPMorgan Shifts Ratings on Bitcoin Miners Amid AI Pivot and Dilution Risks
JPMorgan has made some big moves in its outlook for Bitcoin mining companies. The bank upgraded Cipher Mining and CleanSpark, but lowered targets for Marathon Digital (MARA) and Riot Platforms (RIOT) due to concerns over shareholder dilution.
AI Boosts Cipher and CleanSpark
Cipher and CleanSpark are catching Wall Street’s attention because they’re expanding into AI-driven high-performance computing, not just mining Bitcoin. Cipher plans to reach 1.7 GW of infrastructure by 2026, mostly for AI services. CleanSpark recently added 200 MW in its Texas data center dedicated to AI.
Because of this pivot, JPMorgan upgraded both companies from “Neutral” to “Overweight”. Cipher’s price target rose from $12 to $18, while CleanSpark stays at $14.
MARA and RIOT Face Dilution Concerns
On the other hand, MARA and RIOT could face trouble. Mining companies need big capital to grow, and raising money often means issuing more shares. This dilutes current investors, and JPMorgan says the market isn’t fully accounting for it.
Their analysis shows that the actual share counts could be 20–33% higher than what’s reported in Bloomberg, meaning these firms might be overvalued. Because of this, JPMorgan cut MARA’s target from $20 to $13 and RIOT’s from $19 to $17.
The Bottom Line
Bitcoin miners are diversifying and moving into AI, which is exciting for some companies like Cipher and CleanSpark. But investors need to be careful with firms like MARA and RIOT, where dilution could eat into returns.
