JPMorgan has upgraded Cipher Mining and CleanSpark, pointing to clear progress in their shift toward High-Performance Computing (HPC) as the next major revenue engine. The move highlights how the pivot to AI-focused infrastructure is becoming a defining trend for miners seeking stability beyond Bitcoin’s volatility.
The shift toward HPC reshapes miner valuations
HPC —the use of high-capacity data centers for intensive compute tasks like AI training— gives miners access to contracted, recurring demand from hyperscalers and enterprise clients, offering a path to more predictable income.
JPMorgan raised Cipher Mining to “Overweight” with a new $18 price target, citing ~600 MW of contracted capacity and deals with hyperscalers such as AWS and Fluidstack. The bank also argued that the recent market pullback created a “compelling entry point” for investors.
CleanSpark received the same “Overweight” rating, supported by the firm’s ~200 MW HPC expansion in Texas within a 285 MW campus, plus a Bitcoin treasury valued at $1.6B, strengthening its balance sheet during the transition.
The bank’s valuation model now incorporates per-megawatt metrics, reflecting how markets are re-pricing operators that combine energy assets, colocation services, and AI-ready infrastructure. JPMorgan also noted that recent industry deals validate the feasibility of large-scale HPC pivots.
The report identifies three key economic drivers: the rapid pace of HPC conversions, energy-cost arbitrage, and the shift toward stable, contracted revenue instead of relying on block rewards. Estimated AI-colocation revenues of $1–4M per MW per year feed into a broader potential NPV of $37.6B and $14B in annual profit if adoption becomes widespread.
JPMorgan also reviewed other listed miners: Riot stays “Overweight,” Iris Energy receives an outlook upgrade thanks to contract volume, while Marathon faces target cuts over Bitcoin-price and dilution risks. Bitfarms is highlighted as an “ambitious” transition case with 341 MW, despite one-off restructuring losses.
The bank warns of a nine-month operational window for miners to lock in hyperscaler and AI contracts if they want to convert the pivot into dependable cash flow. Overall, the upgrades to Cipher and CleanSpark reflect a broader reallocation of value from Bitcoin extraction to AI compute, shifting the risk–reward equation for miners, traders, and managers alike.
