JP Morgan: Bitcoin mining industry at a crucial stage.

The bitcoin mining industry has landed under the microscope of Wall Street giant JPMorgan as it initiates coverage of top crypto miners. 

In a new bullish report, analysts say major catalysts could spark a rally if miners can survive epic risks threatening their very survival.

JPMorgan kicked off coverage Wednesday by naming CleanSpark its top mining pick, hailing the company’s “A-team” management and fund growth plans. 

But it slapped underweight ratings on mining giants Marathon Digital and Riot Platforms, warning of high costs and uncertainty ahead.

“The hotly anticipated approval of a bitcoin spot ETF could light a fire under crypto prices, raining revenue on efficient miners,” JPMorgan said. 

But gathering storms of record hash rates and next year’s halving have analysts on edge.

“It’s do or die time for bitcoin miners on the knife edge of a crypto winter,” said lead analyst Reginald Smith. “Those who cut costs and lock in funding will be poised to strike if the ETF sparks a bitcoin breakout.”

CleanSpark snagged pole position with JPMorgan thanks to its “lean and mean” operations. 

But Marathon Digital’s sprawling energy costs could become an “albatross” during the halving, analysts said. Riot Platforms faces integration risks after its blockbuster Whinstone U.S. acquisition.

All eyes are on the SEC’s looming ETF decision that could take Bitcoin mainstream. But JPMorgan sees existential threats if miners can’t survive the approaching halving hurricane. The bank’s initiation of coverage puts an institutional spotlight on crypto miners sailing into the storm of 2023.

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