Bitcoin miners HIVE, Bitfarm and Bitdeer downgraded as analyst warns on AI shift

Industry Overview - KBW has adopted a cautious stance on the crypto mining sector, downgrading Bitfarms, Bitdeer, and HIVE Digital from outperform to market perform, citing execution risks and long lead times in monetizing the industry's shift towards high-performance computing (HPC) and AI hosting [1] - Bitcoin miners are rebranding as digital infrastructure providers to adapt to a record-low margin environment post-2024 halving, aiming to convert existing facilities into AI-ready data centers for stable enterprise contracts [2] Bitfarms - Bitfarms has been downgraded to market perform, with a price target raised to $3.00 from $2.50, but no formal leasing agreement expected until the second half of 2026, raising concerns over rising leverage [4][5] - The market has already priced in the potential of Bitfarms' 120-megawatt site in Sharon, Pennsylvania, despite CEO Ben Gagnon's solid vision [4] Bitdeer - Bitdeer's downgrade included a significant price target cut to $14 from $26.50, with acknowledgment of its potential to become a leading public miner by 2026 through Sealminer technology, but increasing focus on AI cloud adds uncertainty [6] - Key concerns include the company's small scale, concentrated shareholder control, and related-party exposure [6] HIVE Digital - HIVE Digital's price target has been slashed to $3.50 from $11.00, with skepticism regarding the durability of its AI cloud strategy, as reliance on partner channels and equipment financing positions it poorly against pure-play data center competitors [8]