tl;dr

JPMorgan predicts that power demand from hyperscalers and AI firms could make bitcoin mining companies potential takeover targets. The report cites CoreWeave's deal with Core Scientific as a validation of the mining sector's shift to high-performance computing (HPC). It suggests that bitcoin miners ...

Hyperscalers and AI firms are eyeing bitcoin mining companies as potential takeover targets due to power demand, as per a report by JPMorgan. The recent deal between CoreWeave and Core Scientific validates the mining sector's shift to high-performance computing (HPC). Financially pressured bitcoin miners are deemed more susceptible to acquisition offers.

The report suggests that power demand from hyperscalers and AI firms could make bitcoin mining companies potential takeover targets. It also highlights CoreWeave's deal with Core Scientific as a validation of the mining sector’s pivot to HPC. Additionally, it mentions that bitcoin miners under financial pressure following the recent halving may be more open to acquisition deals. The bank estimates that U.S.-listed bitcoin miners draw up to 5 GW of power and have access to an additional 2.5 GW, making them prospective acquisition targets. Riot Platforms is singled out as a miner with the financial capacity for deal-making.

Hyperscalers and AI firms are exploring various options to meet their energy needs, potentially making bitcoin mining companies with attractive power contracts appealing acquisition targets, according to JPMorgan's research report. The report highlights the surge in mergers and acquisitions in the mining sector after the halving. Core Scientific's shares rose following a 200 MW AI deal with CoreWeave and an offer to buy the company in an all-cash deal. Similarly, Riot Platforms made a hostile offer to purchase Bitfarms last month.

JPMorgan emphasizes that the CoreWeave deal validates and may expedite the mining sector’s involvement in HPC. The report also notes that within the bank’s coverage, the news is most impactful to Iris Energy, which has the rights to develop over 2 GW of power. JPMorgan predicts that the deal could enhance the “valuation floor for sub-scale mining operators” and help “rationalize the bitcoin network” by improving the profits of the remaining operators.

Furthermore, some bitcoin miners are under financial pressure to exit the market after the recent halving event, making them more open to acquisition offers. Broker Bernstein suggested that Riot Platforms is best positioned to consolidate the mining sector, given its financial capacity for deal-making.

More about C3 Ai Inc

Stock Analysis: C3 Ai Inc (C3)

C3 Ai Inc operates in the technology and services-prepackaged software sector. The company's market cap is $3.73 billion, with no dividend yield. The stock has shown a -2.34% change in price, closing at $2.602 per share. The RSI stands at -0.901, indicating an oversold position. The trading volume is at 310,582,000, with a closing price of $29.35. There is no dividend yield, and the beta is 0.196.

More about JPMorgan Chase & Co

JPMorgan Chase & Co Summary

JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. As a Bulge Bracket bank, it is a major provider of various investment banking and financial services. It is one of America's Big Four banks, along with Bank of America, Citigroup, and Wells Fargo. JPMorgan Chase is considered to be a universal bank and a custodian bank. The J.P. Morgan brand is used by the investment banking, asset management, private banking, private wealth management, and treasury services divisions.

Finance Details

Sector: National Commercial Banks

Market Cap: 579.56 billion

Price/Earnings Ratio: 12.02

Dividend Yield: 4.25%

Return on Equity: 16.57%

Current Stock Price: $208.05

Price to Book Ratio: 0.336

Shares Outstanding: 1.5 billion

EPS: $0.083

Dividend per Share: $0.111

More about Core Scientific Inc. Common Stock

Core Scientific Inc. Common Stock Summary:

Core Scientific, Inc. provides blockchain and artificial intelligence (AI) infrastructure services in the United States. The company is headquartered in Austin, Texas.

Industry: TECHNOLOGY

Sector: SERVICES-COMPUTER PROCESSING & DATA PREPARATION

Market Cap: 542,047,000

Dividend Yield: None

EPS: 1.323

PE Ratio: -0.491

Volume: 502,400,000

Stock Price: 6.75

52 Week High: 0

52 Week Low: 0

RSI (14): 0.171

More about Riot Blockchain Inc
Stock Analysis Summary

Riot Blockchain Inc

Riot Blockchain, Inc., focuses on the cryptocurrency mining operation in North America. The company is headquartered in Castle Rock, Colorado.

Industry

LIFE SCIENCES, IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES

Financial Data

Market Cap: 2786775000

Current Price: 22.98

Dividend Yield: None

EPS: 0.42

PE Ratio: 1.448

ROE: 0.501

Volume: 286738000

52-Week High: 17.86

52-Week Low: 6.36

Beta: 0.083

More about Bitfarms Ltd

Bitfarms Ltd Technical Analysis Summary

Bitfarms Ltd, a company in the technology sector focused on services such as computer programming and data processing, has shown the following key technical indicators:

- Support and Resistance Levels: -0.4

- Relative Strength Index (RSI): 0.577

- Bollinger Bands: -0.638

- Trading Volume: 166,633,000

- Moving Averages: 4.04

- Breakouts: 0

- Price Oscillator: 0.674

More about Iris Energy Ltd
Stock Market Analysis

Summary of Technical Analysis for Iris Energy Ltd

Industry: TECHNOLOGY, SERVICES-COMPUTER PROCESSING & DATA PREPARATION

Volume: 165,535,000

Price Change: -0.06

Price Earnings Ratio: 2.179

Relative Strength Index (RSI): -0.0532

Support Level: 12

Resistance Level: 0

Breakout Level: 3.798

Disclaimer

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 14 Nov 24
 14 Nov 24
 14 Nov 24