KBW downgrades ratings of three major Bitcoin miners, warns of artificial intelligence transformation risks

2026-01-27 13:39:10

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Deep Tide TechFlow News, January 27 — According to CoinDesk, Wall Street investment bank KBW downgraded the ratings of Bitfarms, Bitdeer, and HIVE Digital from “Outperform” to “Market Perform.” Analyst Stephen Glagola stated that these miners face execution risks and longer realization cycles as they transition into artificial intelligence and high-performance computing (HPC) businesses.\n\nKBW significantly lowered the target price for Bitdeer from $26.50 to $14, while the target price for HIVE Digital was reduced from $11 to $3.50. Meanwhile, the target price for Bitfarms was slightly increased to $3.\n\nGlagola pointed out that, in an environment where profit margins are at historic lows following the Bitcoin halving, miners are repositioning themselves as digital infrastructure providers. However, this transition requires substantial capital investment and faces strict operational time standards. KBW believes that transforming from a miner to a data center operator is a capital-intensive process that may require more dilutive financing and patience than investors expect.

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