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 December 2022 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 Australian 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.