title: Bitcoin BTC/USD miners just had one of their best quarters on record

Bitcoin BTC/USD miners just had one of their best quarters on record, but the real winners aren't just those mining the most coins – it's those keeping costs in check.

JPMorgan analyst Reginald L. Smith took a closer look at the latest trends in the Bitcoin (BTC) miner sector, upgrading IREN Ltd (NYSE: IREN) to Overweight and moving Cipher Mining Inc (NASDAQ:CIFR) to Neutral.

Four out of the five major publicly traded bitcoin miners – Cipher, CleanSpark Inc (NYSE: CLSK), IREN, MARA Holdings Inc (NYSE: MARA) and Riot Platforms Inc (NASDAQ: RIOT) – reported record revenues and adjusted earnings in the fourth quarter, largely driven by Bitcoin's price surge and improvements in mining efficiency.

MARA mined the most coins with 2,514 BTC, while IREN boasted a 65% increase in production quarter-over-quarter, bringing in 1,347 BTC. However, IREN also excelled in efficiency, producing BTC at the lowest all-in cash cost of ~$36,100 per coin. In contrast, Riot reported the highest cost at ~$72,400 per BTC, still a high price considering BTC averaged ~$83,300 in the fourth quarter.

MARA had the lowest cash SG&A costs at $9,600 per coin, making it a lean operator despite its relatively high power costs of $52,400 per BTC.

After an aggressive 180% increase in hashrate in 2024, outpacing even network growth, the five miners are slowing down in 2025.

CleanSpark and MARA are shifting toward more disciplined capital management, cutting back on hashrate expansion and focusing on profitability.

On the other hand, IREN, Cipher, and Riot are evaluating hashrate expansion versus high-performance computing (HPC) opportunities.

Riot and IREN are trimming their hashrate targets to free up capacity for HPC projects, and Cipher is also considering reallocating resources.

HPC: The Next Big Pivot

Smith sees HPC data centers as a key growth driver in the coming year, with Cipher best positioned to strike a deal in the near term. IREN is constructing a 75 MW multi-tenant, liquid-cooled HPC data center, expected to go live in 2H25, though financing and tenant details remain largely disclosed.

Both Riot and IREN continue active talks with hyperscalers, but deals are taking longer to materialize.

In terms of stock ratings, Smith is upgrading IREN to Overweight with a $12 price target, highlighting its low-cost structure and strong production growth.

CleanSpark, also rated Overweight, gets a revised $12 price target (down from $17) due to deteriorating mining economics.

Meanwhile, Cipher moves to Neutral, as its 2025 hashrate target lags behind competitors, and capital raises appear likely.

MARA and Riot remain Neutral and Overweight, respectively, with price targets of $18 and $13.

As miners slow expansion, pivot toward HPC, and manage capital more cautiously, 2025 is a year of strategic recalibration. Bitcoin's price will still dictate the sector's fate, but those with the lowest costs and diversified revenue streams will have the edge.