Marathon Digital initiated with an Underweight at JPMorgan

JPMorgan initiated coverage of Marathon Digital with an Underweight rating and $5 price target. Marathon is the largest bitcoin morning operator but has the highest energy costs and lowest margins, the analyst tells investors in a research note. The bitcoin mining industry is at a crucible moment as management teams weigh the prospects of a bitcoin ETF, which may catalyze a rally, against record hash rate increases and the looming block reward halving that threaten industry revenues and profitability, says JPMorgan. The firm favors operators that offer the best relative value in light of their existing hash rate, operational efficiency, power contracts, funded growth plans and liquidity.