Analysts warn of AI transformation as bitcoin miners HIVE, Bitfarm, and Bitdeer face rating downgrades.

According to CoinWorld, KBW has downgraded the ratings of Bitfarms, Bitdeer, and HIVE Digital from "outperform" to "market perform," citing execution risks in their transition to artificial intelligence and high-performance computing. Although KBW acknowledges that these companies are shifting from the highly volatile mining business to more stable data center contracts, the firm highlighted concerns about longer delivery cycles, capital intensity, and competitive positioning. KBW has adjusted its target prices, lowering Bitdeer's target price from $26.50 to $14, and HIVE's target price from $11.00 to $3.50, reflecting KBW's doubts about the profitability timeline and operating leverage of these three companies.