KBW cut ratings on Bitfarms (BITF), Bitdeer (BTDR) and HIVE Digital (HIVE) from outperform to market perform, citing the sector’s pivot from Bitcoin mining to AI/HPC hosting. The analyst flagged long lease and build timelines, elevated execution risk, heavy capital requirements following record-low margins after the 2024 halving, and the potential for more dilution. Price targets: Bitfarms raised to $3.00 (from $2.50) but lease unlikely until H2 2026; Bitdeer cut to $14 (from $26.50) over scale and related-party concerns; HIVE cut to $3.50 (from $11.00) with questions on AI strategy durability and negative pre-tax ROIC.

KBW downgraded the three miners to market perform and adjusted price targets (Bitfarms +, Bitdeer down, HIVE sharply down). The firm cited long lead times for AI/HPC leases, execution risk, heavy capital needs after record-low margins post-2024 halving, rising leverage, scale and related-party concerns, HIVE’s questioned AI strategy and negative pre-tax ROIC, and warned transition may require further dilution — all concrete factors likely to weigh on investor sentiment.