JPMorgan issues new crypto stock ratings after MSCI backlash

MSCI +1.14% BTC-USD +0.50% CIFR +4.85% CLSK +2.96% MSTR -3.83%

JPMorgan refreshed its outlook for Bitcoin miners on Monday, upgrading Cipher Mining and CleanSpark while trimming expectations for several of the sector’s largest incumbents.

The move follows a wave of criticism from the crypto community.

JPMorgan faces backlash from crypto community

The bank came under fire after its research note circulated an analysis tied to MSCI — Morgan Stanley Capital International, which is weighing whether to exclude companies that hold more than 50% of their balance sheet in crypto assets.

MSCI indices are tracked by pension funds, ETFs, and sovereign wealth funds, making inclusion a material factor in market liquidity.

The note warned that MicroStrategy, now Strategy (NASDAQ: MSTR), which holds 649,870 Bitcoin, may face removal as MSCI approaches its Jan. 15 decision. It estimated potential outflows of up to $2.8 billion from MSCI indices and as much as $8.8 billion if other index providers follow.

Prominent Bitcoin users subsequently urged a boycott of JPMorgan.

The controversy escalated when Strike CEO Jack Mallers said the bank closed his personal accounts in September, citing “concerning activity” and the Bank Secrecy Act.

“Every time I asked them why, they said the same thing: ‘We aren’t allowed to tell you,’” Mallers wrote.

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Cipher and CleanSpark upgrades

Analysts Reginald Smith and Charles Pearce said miners are entering a “higher-conviction” phase of high-performance computing (HPC) expansion, with more than 600 MW of AI-linked deals signed with AWS, Google-backed Fluidstack, and Microsoft since late September.

They expect roughly 1.7 GW of new critical-IT capacity to be announced by late 2026.

Cipher Mining (NASDAQ: CIFR) was upgraded to Overweight, with its December 2026 price target raised to $18 from $12.

Analysts cited 410 MW of new HPC contracts and a 45% share-price pullback as “a nice entry point.”

They now model Cipher securing 480 MW of critical-IT by 2026, about 64% of approved capacity.

Cipher Mining sits at the intersection of large-scale data infrastructure and the broader crypto mining ecosystem, operating industrial Bitcoin (BTC) mining facilities that convert low-cost energy into computational power.

At press time, Cipher Mining was trading 15.76% higher at $16.39.

CleanSpark (NASDAQ: CLSK) was also upgraded to Overweight, with its $14 target reiterated. The firm has an estimated 200 MW of HPC potential at its recently acquired 285-MW Texas site.

CleanSpark is a major publicly traded Bitcoin miner focused on scaling efficient, energy-conscious infrastructure across the United States.

Post the upgrade, CleanSpark shares jumped 16.91%.

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IREN, Marathon, and Riot see mixed revisions

JPMorgan lifted IREN Ltd’s (NASDAQ: IREN) target to $39 from $28 following its $9.7 billion Microsoft cloud deal, though the rating remains Underweight because current valuations already price in large-scale HPC expansion. The estimate remains below IREN’s roughly $46.70 share price observed Monday.

Microsoft-backed IREN, formerly known as Iris Energy, is a high-capacity Bitcoin miner that focuses on powering its operations with renewable energy across data centers in North America.

Its model emphasizes sustainability and vertically integrated infrastructure, reflecting a growing trend among industrial miners who prioritize low-cost, carbon-free electricity to remain competitive after each Bitcoin halving.

Iren's stock was up by 13.23% post the upgrade.

Related: Bitcoin miners are leading the way in the renewable energy sector

Marathon Holdings (NASDAQ: MARA), one of the largest publicly listed Bitcoin miners, saw its target cut to $13 from $20 amid falling BTC prices, rising network hashrate, and a larger share count.

MARA operates a distributed fleet of ASIC machines across multiple hosting partners and self-built facilities.

Despite the trim, MARA remains unaffected, trading 9.99% higher at press time.

Riot Platforms Inc. (NASDAQ: RIOT) target was trimmed to $17 from $19 due to lower mining-business valuations and expectations of a 600-MW colocation deal at its Corsicana site.

Riot operates massive data centers in Texas that give it significant influence over the network’s total hashpower. It has become known for pairing aggressive expansion with strategic power management, leveraging flexible load agreements and renewable-heavy grids to keep operating costs competitive.

Riot also continued its upward movement, climbing 8.69% higher despite the target trim.

Related: What is Bitcoin mining? Explained

Bitcoin miners pivot towards AI

Bitcoin mining has become less profitable, pushing several large energy and digital infrastructure firms to wind down operations and redeploy their hardware toward artificial intelligence (AI) workloads.

The Bitcoin network relies on miners using specialized, high-powered machines to solve cryptographic puzzles, validate transactions and add new blocks to the chain in exchange for BTC rewards.

That revenue stream is structurally capped by Bitcoin’s halving cycle, which cuts the block subsidy in half roughly every four years, slowing the issuance of new coins and reinforcing the hard cap of 21 million BTC.

Each halving reduces the number of coins miners earn even as network hashrate climbs, squeezing margins and making it harder for many operators to stay profitable.

Because Bitcoin miners already control dense fleets of energy-hungry compute that can be repurposed for AI data centers, a growing number now see more attractive economics in serving AI demand than in continuing to mine BTC.

This story was originally published by TheStreet on Nov 24, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.