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.
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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.
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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
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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
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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
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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
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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