On Friday, Cantor Fitzgerald updated its outlook on Bitdeer Technologies Group (NASDAQ:BTDR), raising the price target to $15.00 from the previous $13.00, while maintaining an Overweight rating. The adjustment follows Bitdeer's release of its June operations update earlier this week.
Bitdeer reported mining 179 Bitcoin in June, a slight decrease from 184 mined in May. Despite this, the company's self-mining hash rate saw an increase, reaching 7.3 EH/s up from 6.9 EH/s. However, the total hash rate under management experienced a marginal decline to 22.3 EH/s from 22.4 EH/s. This was primarily attributed to a combined month-over-month drop of 0.5 EH/s in the cloud and hosting hash rates.
The company also announced a significant expansion of its operations. Bitdeer signed a 30-year lease with the Monroe Port Authority in Ohio for access to 570 megawatts (MW), boosting its contracted power capacity to a substantial 2.5 gigawatts (GW). This establishes Bitdeer as having the largest contracted power capacity among the mining companies tracked by Cantor Fitzgerald.
Looking ahead, Bitdeer has a near-term pipeline of 175 MW driven by the Tydal phase 1 & 2 development, with expectations to add 1.65 GW of power capacity by the end of 2026. This includes expansions in Ohio, Bhutan, and Rockdale. Additionally, the company's existing AI cloud services business reached over 75% utilization in June, indicating a growing demand for GPU access.
On the technology development front, Bitdeer completed the tape-out of the 14 J/TH SEAL02 chip and has commenced research and development for the next-generation 10 J/TH SEAL03 chip. The company is on track to deploy 3.4 EH/s of its proprietary ASIC technology in its Texas and Tydal data centers by the fourth quarter of 2024.
Cantor Fitzgerald expressed a positive outlook on Bitdeer's future, citing the company's significant power pipeline and ASIC development potential as factors that are currently underestimated by the market, suggesting potential for a re-rating of the shares.
In other recent news, Bitdeer Technologies Group has reported significant operational advancements, including a substantial increase in its global contracted power capacity, now reaching 2.5 gigawatts (GW). This follows a new 570-megawatt (MW), 30-year lease agreement with the Monroe County Port Authority in Ohio. The company has also commenced the conversion of a 100 MW site in Texas to hydro-cooling technology.
Bitdeer's proprietary ASIC development continues with the SEALMINER roadmap. Analyst firm Roth/MKM has reaffirmed its 'Buy' rating on Bitdeer's stock, while Cantor Fitzgerald initiated coverage on Bitdeer with an Overweight rating. Bitdeer's recent acquisition of ASIC designer Desiweminer in an all-stock transaction was also highlighted by H.C. Wainwright, which maintained a Buy rating on Bitdeer's stock.
InvestingPro Insights
As Bitdeer Technologies Group (NASDAQ:BTDR) embarks on its ambitious expansion plans and technological advancements, the market is taking notice. The recent price target increase by Cantor Fitzgerald is a nod to the company's potential. To provide further context, InvestingPro data reflects a robust 31.69% revenue growth over the last twelve months as of Q1 2024, indicating a bullish trend in the company's financial performance. Additionally, Bitdeer's stock has experienced a significant return, with a 68.76% increase over the last month and a 67.8% increase over the last three months, underscoring a strong market confidence in the company's direction.
From an operational perspective, Bitdeer's strategies seem to be resonating with investors. InvestingPro Tips suggest that the company's stock price movements have been quite volatile, which can be appealing to traders looking for short-term gains. Moreover, the company's liquid assets exceed its short-term obligations, providing a cushion for its aggressive expansion efforts. For those interested in deeper analysis, InvestingPro offers additional tips that can help investors gauge Bitdeer's cash burn rate and valuation metrics. With the use of the coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a total of 14 InvestingPro Tips that could further inform investment decisions.
While the company does not pay a dividend, which could be a consideration for income-focused investors, the strong returns and growth prospects highlighted by Cantor Fitzgerald and reflected in the InvestingPro data suggest that Bitdeer's stock may offer significant upside for growth-oriented investors. With an adjusted market cap of $1.62 billion USD, Bitdeer is positioning itself as a noteworthy player in the tech and mining sectors.
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