J.P. Morgan Favors Riot Blockchain Over Marathon for Bitcoin Mining Growth Potential

J.P. Morgan analyst Reginald Smith favors Riot Platforms (RIOT) over Marathon Digital (MARA) among Bitcoin mining stocks. He thinks RIOT offers the best upside potential.

RIOT operates the largest Bitcoin mining facility in North America and plans to double its hashrate capacity by end of 2023. Its expansion plans are more realistic than peers.

MARA is transitioning to a more vertically integrated model to gain greater control and efficiency. However, its "infrastructure light" approach currently leaves it more exposed to BTC price volatility.

Smith puts an Overweight rating and $15 price target on RIOT, seeing 20% upside potential over the next 12 months. Meanwhile, he rates MARA Underweight with a $16 target, suggesting 23% downside risk.

The Street mostly agrees with Smith's bullish view on RIOT, rating it a Strong Buy based on unanimous support amongst analysts. Views are more mixed on MARA which garners a Hold consensus rating.