Bitcoin Miner Iris Energy Has More Than 100% Upside, JPMorgan Analyst Says

The shares of Iris Energy (IREN), a Sydney-based company that mines bitcoin primarily with renewable energy, has the potential to rise more than 100% in the next 12 months, JPMorgan analysts led by Reginald Smith wrote.

  • Iris Energy is a cheap way to play the digital gold rush, said JPMorgan’s analysts, citing a deep discount for its shares versus other crypto miners.
  • We think IREN is an attractive and efficient way to gain long exposure to Bitcoin prices and sentiment and are initiating coverage with an Overweight rating and $30 Dec ’22 price target, the analysts wrote.
  • The shares of Iris Energy closed at $14.40 on  Dec. 10, implying about 108% upside based on JPMorgan’s price target.
  • Meanwhile, another Wall Street investment firm, Compass Point Research, also initiated research on Iris Energy with a buy rating and 12-month price target of $22, implying more than 50% upside from Friday’s close.
  • We believe IREN is well positioned with a large order for 14.5 EH/s of Bitmain with below market pricing and a strategy of owning/operating data centers, wrote Compass Point’s analyst Giuliano Bologna.
  • Bologna also highlighted that Iris Energy has the right pieces to become one of the biggest bitcoin miners and that shares are currently trading at a discounted valuation.
  • The shares of the bitcoin miner have fallen about 42% since its trading debut on Nov. 17. Last week, the company said its monthly revenue fell 10% in November because of timing issues and an increase in network difficulty.
  • Shares of Iris Energy were down about 3% in early trading on Monday after rising in pre-market trading.

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