HIVE, BITF, BTDR downgraded at KBW: AI/HPC plans could take longer than hoped to pay off

KBW has downgraded three Bitcoin miners—Bitfarms (BITF), Bitdeer (BTDR), and HIVE Digital (HIVE)—from outperform to market perform, citing concerns that their strategic shift toward AI and High-Performance Computing (HPC) hosting may take longer to generate returns than the market anticipates. The investment bank noted that while the transition to digital infrastructure is compelling, it involves significant execution risks and long lead times, especially given the capital-intensive nature of retrofitting facilities for AI-ready data centers.

Specifically, KBW lowered Bitfarms' rating, believing its Sharon, PA site's potential is already priced in, with leasing unlikely before H2 2026. Bitdeer saw a steep price target cut due to uncertainty added by its growing AI cloud focus, small scale, and concentrated shareholder control. HIVE Digital's price target was also slashed as the analyst questioned its AI strategy's durability, noting its reliance on partner channels leaves it sub-optimally positioned compared to pure-play competitors.

The overarching message from KBW is that the journey for these miners to become successful data center operators is capital-intensive, potentially requiring more shareholder dilution and patience than currently expected by investors.

(Source：CoinDesk)