According to a report by CoinDesk, Wall Street investment bank KBW downgraded the ratings of Bitfarms, Bitdeer, and HIVE Digital from "Outperform" to "Market Outperform." Analyst Stephen Glagola noted that these miners face execution risks and longer monetization cycles as they transition toward artificial intelligence and high-performance computing (HPC) businesses. KBW significantly cut Bitdeer's price target from $26.50 to $14, and reduced HIVE Digital's target from $11 to $3.50, while Bitfarms' target was slightly raised to $3. Glagola pointed out that in an environment where profit margins are at historical lows following the Bitcoin halving, miners are repositioning themselves as digital infrastructure providers. However, this transition requires substantial capital investment and strict operational timelines. KBW believes the shift from miners to data center operators is a capital-intensive process that may require more dilutive financing and patience than investors anticipate.
KBW Downgrades Three Major Bitcoin Miners, Warns of AI Transition Risks
TechFlowShare
Summary
KBW downgrades Bitfarms, Bitdeer, and HIVE Digital, citing execution risks and weak monetization from their AI shift. Price targets were slashed, with Bitdeer cut to $14 and HIVE to $3.50. Bitfarms' target edged up to $3. Analysts warn of challenging risk-to-reward ratios amid capital-heavy transitions. Traders should monitor support and resistance levels as profit margins remain under pressure.
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