JPMorgan remains bullish on bitcoin miners in 2024 after SEC ruling

JPMorgan says yesterday’s SEC approval of the first U.S.-listed spot bitcoin exchanged traded funds was a much anticipated ruling that has added incremental buying pressure to bitcoin and bitcoin mining stocks over the past few months. That said, it is unclear whether the announcement will spur further near-term upside in bitcoin and mining stocks, or if investors will “sell the news,” the analyst tells investors in a research note. The firm’s sense is that mining stocks are “due for a breather,” but it expects stock performance to track bitcoin prices over the coming weeks. JPMorgan remains bullish on bitcoin miners in 2024. It continues to think the “stars are aligning for a big year” in bitcoin mining. Scale miners are positioned to report record revenue and profits driven by strong hashrate growth and bitcoin appreciation, the analyst contends. Overweight-rated Iris Energy (IREN) is JPMorgan’s top value pick, but it is “incrementally constructive” on Neutral-rated Riot Platforms (RIOT), which it says is more actively traded and a long-term winner in the space.