JPMorgan downgraded Marathon Digital Holdings (MARA) from Neutral to Underweight. The bank lowered its price target for the stock from $13 to $11.
Analysts cited concerns regarding the company’s capital-light strategy for the AI data center market. This approach centers on a joint venture with Starwood Digital Ventures.
Marathon contributes land to the partnership while Starwood manages all development and operations. JPMorgan argues this structure places Marathon at the bottom of the data center value chain.
The arrangement limits Marathon to 50% of the potential upside. Analysts prefer competing firms that maintain full control over the entire development and operation process.