Six Flags stock rises after appointing John Reilly as new CEO
Investing.com -- Shares of Cipher rose about 5% premarket and CleanSpark gained roughly 6% after JPMorgan upgraded both bitcoin miners to Overweight, saying a surge in long term high performance computing deals strengthens the case for their transition into data center operators.
The brokerage lifted its price target on Cipher to $18 from $12 and reiterated that recent share weakness offers a clearer entry point.
JPMorgan said deal activity across the sector has accelerated since late September, with IREN and Cipher signing more than $19 billion in combined contracted revenue tied to long duration cloud and colocation agreements.
Analysts now expect miners to shift about 1.7 GW of critical IT capacity to HPC uses by late 2026, or roughly 35% of their approved power base.
Cipher was highlighted as one of the strongest operators, with about 600 MW of gross capacity already contracted to tenants such as AWS and Fluidstack.
JPMorgan said the stock has fallen about 45% from recent highs and could see further upside if it signs additional agreements at sites such as the 100 MW Stingray project.
For CleanSpark , the upgrade reflects credit for roughly 200 MW of critical IT capacity at its newly acquired Texas site.
The bank raised its price target on IREN to $39 from $28 on a richer integrated cloud valuation, while trimming its targets on Marathon Digital and Riot Platforms. It said weaker bitcoin prices and larger share counts weigh on both names because they hold the biggest coin inventories in the group.
JPMorgan also increased its valuation estimates for HPC capacity after cutting discount rates in its cloud and colocation models.
It now sees a MW of critical IT colocation capacity worth $8 million to $17 million and integrated cloud capacity worth up to $19 million.