Bitcoin miners are making a big bet on artificial intelligence, and JPMorgan thinks some of them are about to cash in. The investment bank refreshed its coverage of the crypto mining sector on Monday, upgrading two companies while cutting price targets across several legacy operators who are still betting primarily on bitcoin extraction.
The story here isn't really about bitcoin anymore. It's about power—literally. Miners control massive amounts of electricity infrastructure, and it turns out that AI data centers need exactly what miners have: access to huge amounts of energy in places where the grid can handle it. JPMorgan analysts Reginald Smith and Charles Pearce argue that we're entering a "higher-conviction" phase where miners convert their power assets into long-term high-performance computing revenue streams.
The numbers tell the story. Since late September, miners have signed more than 600 megawatts worth of AI-related deals. JPMorgan expects the sector to announce roughly 1.7 gigawatts of additional critical-IT capacity by late 2026—that's equal to about 35% of their total approved power footprint. This isn't a side hustle anymore. It's becoming the main business.
Cipher Mining Gets the Upgrade Treatment
Cipher Mining Inc. (CIFR) caught JPMorgan's attention in the best way possible. The firm upgraded the stock to Overweight from Neutral and lifted its December 2026 price target to $18 from $12. The catalyst? Cipher recently locked in 410 megawatts of HPC contracts, and the stock has pulled back about 45% from recent highs.
JPMorgan sees that pullback as an opportunity. The bank expects Cipher to secure roughly 480 megawatts of critical-IT capacity by 2026, representing about 64% of its approved power footprint. That's a massive shift away from bitcoin mining toward steadier, longer-duration cloud computing contracts. The analysts noted that long-duration sites planned for 2028 and 2029 could support even higher valuations if the company executes a full transition to HPC.
On Monday, CIFR traded near $16.77, up about 18.6% after bouncing from its rising trendline near $14. The recovery keeps the pattern of higher lows intact and reinforces what JPMorgan is betting on: a company that's successfully pivoting its business model. Price has reclaimed the 20-day exponential moving average at $15.89, with the 50-day EMA near $16.91 as the next resistance level. A breakout above that area could open a run toward the upper Bollinger Band near $24.62, with support holding in the $14 to $15 range.
CleanSpark Also Joins the Winner's Circle
CleanSpark Inc. (CLSK) also earned an upgrade to Overweight, with JPMorgan reiterating its $14 price target. The firm assigned roughly 200 megawatts of critical-IT potential to CleanSpark's new 285-megawatt Texas site, valuing that capacity at about $13 million per megawatt. That valuation reflects the much stronger revenue profile you get from high-density IT loads compared to bitcoin mining.
CleanSpark has emerged as a major beneficiary of the HPC migration theme. Several large-scale mining operators are shifting portions of their power capacity toward cloud-compute contracts, and CleanSpark is ahead of the curve. The company's Texas expansion gives it the infrastructure to capitalize on growing demand from AI and data center operators looking for reliable power.
The stock traded near $11.15 on Monday, up about 14.6%, after rebounding from its long-term ascending trendline. That trendline has served as reliable support for more than a year, and Monday's bounce confirmed strong buyer interest at that level. Price remains below the 20-, 50-, 100-, and 200-day EMAs clustered between $12.42 and $14.32, so a sustained close above that zone is needed to reverse short-term momentum. Immediate resistance sits at $12.40, followed by $14 to $15. Losing the trendline could expose the $10 support area.
IREN Gets a Higher Target But Stays Underweight
IREN Limited (IREN) saw its price target boosted to $39 from $28 following the company's massive $9.7 billion Microsoft cloud-capacity deal disclosed earlier this month. JPMorgan now models 660 megawatts of contracted critical-IT load by 2026, equal to about 250,000 GPUs and roughly $6 billion in annualized cloud-services revenue.
That's a huge deal—literally. But here's the catch: JPMorgan kept its Underweight rating on the stock. The bank's argument is that IREN's share price already reflects much of its expected HPC expansion. In other words, the good news is priced in. IREN traded around $48.16 on Monday morning, up 13.8%, well above JPMorgan's new price target.
Legacy Miners Face Reality Check
Not everyone got good news. JPMorgan slashed its price target for MARA Holdings Inc. (MARA) to $13 from $20, citing pressure from falling Bitcoin (BTC) prices and a rising network hashrate that makes mining less profitable. The firm also pointed to MARA's larger fully diluted share count driven by at-the-market equity issuance and convertible notes. JPMorgan cut the valuation of MARA's mining business from roughly $2.5 billion to $1.3 billion.
Riot Platforms Inc. (RIOT) didn't escape the haircut either. JPMorgan lowered its target to $17 from $19. Analysts expect Riot's Corsicana site to include a 600-megawatt colocation deal, representing roughly one-third of its approved power capacity. But the firm also reduced the valuation of Riot's mining business to about $1 billion, reflecting a more conservative outlook on pure-play bitcoin mining operations.
The message from JPMorgan is clear: miners who are pivoting aggressively toward AI and cloud computing have a brighter future than those still betting heavily on bitcoin extraction. The economics have shifted. Bitcoin mining margins are getting squeezed by higher hashrates and volatile prices, while HPC contracts offer long-duration revenue with less volatility.
The sector is at an inflection point. Miners built out enormous power infrastructure to support bitcoin operations, and now they're discovering that AI companies will pay top dollar for exactly what they have. The winners will be the ones who move fastest and secure the best contracts. JPMorgan's upgrades and downgrades reflect that new reality—and suggest the market is still figuring out which miners are positioned to win in this new game.
