Riot Platforms initiated with an Underweight at JPMorgan

JPMorgan analyst Reginald Smith initiated coverage of Riot Platforms with an Underweight rating and $6.50 price target. Riot has relatively low power costs and liquidity and is nearing completion of a large facility, but is “by far” the most expensive name in JPMorgan’s bitcoin mining coverage universe, 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.