Bitcoin Mining Firms Face Price Target Cuts Amid Disappointing Performance, Analysts Warn

On March 20th, COINOTAG reported that analysts from the research and brokerage firm Bernstein have revised the price forecasts for prominent Bitcoin mining firms, including IREN, CleanSpark, and Riot Platforms, for the year 2025. Their revisions stem from an evident lag in these companies’ performance compared to Bitcoin itself. Analyst Gautam Chhugani noted in a client communication that while Bitcoin mining stocks have suffered a substantial correction ranging from 20% to 40%, Bitcoin’s decline sits at approximately 10%. He highlighted a general disappointment in mining companies’ stock performance, particularly given the lack of significant gains observed in the last quarter of 2022, as the downturn this year has further exacerbated their challenges relative to Bitcoin.

Chhugani also pointed out that institutional interest is increasingly gravitating towards the high-performance computing sector instead of being tethered solely to the cyclical nature of Bitcoin. Nonetheless, firms focusing on AI data center hosting, notably IREN and Core Scientific, have shown resilience in 2024 but are currently underperforming compared to historically focused mining firms like Riot and MARA this year.