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Bitdeer expands power capacity to 2.5 GW, advances ASIC tech

EditorAhmed Abdulazez Abdulkadir
Published 03/07/2024, 14:30
BTDR
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SINGAPORE - Bitdeer Technologies Group (NASDAQ: BTDR), a global leader in blockchain and high-performance computing, has announced significant operational advancements in its June 2024 update. The company reported a substantial increase in its global contracted power capacity, now reaching 2.5 gigawatts (GW), following a new 570-megawatt (MW), 30-year lease agreement with the Monroe County Port Authority in Ohio, U.S.

In line with its expansion strategy, Bitdeer has commenced the conversion of a 100 MW site in Rockdale, Texas, to hydro-cooling technology, with completion expected in Q4 2024. The company's proprietary ASIC development continues with the SEALMINER roadmap, featuring the energized initial Sealminer A1 ASIC samples at Bitdeer sites for testing and the completed tape-out of the SEAL02 chip, which targets an efficiency of 14 joules per terahash (J/TH).

Bitdeer's Chief Business Officer, Linghui Kong, emphasized the strategic significance of the Ohio lease agreement, which bolsters the company's operational flexibility and supports its growth objectives in the sectors of Bitcoin mining and high-performance computing (HPC) and artificial intelligence (AI). Kong also highlighted the successful energization of the first batch of Sealminers and the on-track deployment of 3.4 exahashes per second (EH/s) of Sealminer ASICs in the company's datacenters by the end of 2024.

The company's AI cloud services, powered by NVIDIA (NASDAQ:NVDA)'s DGX SuperPOD with the H100 system, have demonstrated robust customer demand, reaching over 75% utilization in June. Bitdeer's self-mined Bitcoin for the month totaled 179, with its total hash rate under management at 22.3 EH/s, and 223,000 mining machines under management.

Bitdeer's upcoming engagements include participation in the CEO Summit Investment Conference in San Francisco on July 10 and the Bitcoin Nashville event from July 24 to 26.

In other recent news, Bitdeer Technologies Group has seen a flurry of activity. Analyst firm Roth/MKM has reaffirmed its 'Buy' rating on Bitdeer's stock, citing the company's recent securing of power capacity for up to 570 megawatts at its Ohio development site and potential expansion into High-Performance Computing (HPC) hosting. The firm also maintained its price target of $14.00 for Bitdeer's shares.

Cantor Fitzgerald has initiated coverage on Bitdeer with an Overweight rating, emphasizing the company's diversified business model and the potential of its commercial rig business. The firm set a price target of $13.00 for Bitdeer's shares.

H.C. Wainwright has also maintained a Buy rating on Bitdeer's stock, with a price target of $20.00, highlighting the company's recent strides in the ASIC industry. This includes a $100 million private placement financing with Tether and the acquisition of ASIC designer Desiweminer in an all-stock transaction.

Roth/MKM has set a fresh target on Bitdeer shares post-Desiweminer deal, reiterating a Buy rating with a consistent price target of $14.00. This follows Bitdeer's announcement of an all-stock acquisition of ASIC design company Desiweminer.

Bitdeer has also announced its acquisition of FreeChain Inc. (Desiweminer), a crypto ASIC design company, in a deal involving 20 million Class A ordinary shares of Bitdeer.

InvestingPro Insights

As Bitdeer Technologies Group (NASDAQ: BTDR) continues to expand its global footprint and invest in technological advancements, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Bitdeer's market capitalization stands at an adjusted $1.59 billion USD. Despite the company's aggressive growth strategies, it is important to note that the firm is not profitable over the last twelve months, with a reported negative operating income margin of -2.6% and a negative return on assets of -7.02%. This aligns with one of the InvestingPro Tips, which indicates that Bitdeer is quickly burning through cash.

On the stock performance front, Bitdeer's recent price movements have been quite volatile, with the stock experiencing a significant return over the last week of 25.51%, and an even more impressive 83.12% return over the last month. This could be reflective of the market's response to the company's operational advancements and expansion news. However, investors should be wary as the stock's RSI suggests it is in overbought territory, which may signal a potential pullback.

For those interested in a deeper dive into Bitdeer's financials and stock analysis, InvestingPro offers additional insights. There are 13 more InvestingPro Tips available, which can provide valuable guidance for making informed investment decisions. To access these tips and more detailed metrics, investors can visit: https://www.investing.com/pro/BTDR. Moreover, readers can use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive toolkit for analyzing Bitdeer's investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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