Shares of Marathon Digital Holdings (MARA) fell more than 4% after JPMorgan downgraded the stock two notches, from Overweight to Underweight. The bank cut its price target to $11 from $13.
JPMorgan cited concerns about Marathon’s strategy for entering the AI and high-performance computing data center market. The bank’s analyst said Marathon’s “capital-light” joint venture approach would create less value than peers’ direct conversions of existing bitcoin-mining infrastructure for AI use. JPMorgan said the approach places Marathon at the “bottom of the data center value chain.”