Tuesday, Cantor Fitzgerald initiated coverage on Bitdeer Technologies Group (NASDAQ: BTDR), a Bitcoin mining company, with an Overweight rating and a price target of $13.00. The firm highlighted Bitdeer's diversified business model and the potential of its commercial rig business as key factors for this optimistic outlook.
Bitdeer, based in Singapore, operates six data centers across the United States, Norway, and Bhutan. As of May 2024, the company boasts a self-mining hash rate capacity of 6.9 EH/S, a cloud hash rate of 1.7 EH/S, and a hosting capacity of 13.9 EH/S. Cantor Fitzgerald pointed out that the market might be underestimating the value of Bitdeer's diverse operations.
The analyst underscored Bitdeer's significant energy acquisition, securing over 2 GW of power, which supports the company's operations and growth strategy. Additionally, the firm is poised for a growth inflection in its self-mining hash rate with the deployment of its own SEALMINERA1 rigs.
Cantor Fitzgerald's coverage notes that based on year-end 2025 hash rate estimates of 29.3 EH/S, Bitdeer's current valuation stands at an enterprise value of $25.8 million per EH/S. This valuation is considered the lowest among the miners covered by the analyst. The firm also emphasized that this does not account for half of Bitdeer's business that is not self-mining, which is responsible for approximately 40% of its gross margins.
The firm concluded that as Bitdeer Technologies Group progresses with its growth plans, there is a substantial opportunity for an upward re-rating in the company's stock value, with minimal risk for a downward adjustment. This optimistic stance is based on the company's solid fundamentals and strategic initiatives in the Bitcoin mining industry.
In other recent news, Bitdeer Technologies Group has been making notable strides in the ASIC industry. The company completed a private placement financing of $100 million with Tether and also acquired ASIC designer DesiweMiner in an all-stock transaction. Analysts from H.C. Wainwright and Roth/MKM have maintained a Buy rating on Bitdeer, underlining their confidence in the company's financial status and strategic growth plans.
Additionally, Bitdeer has unveiled its technology roadmap for the proprietary SEALMINER, with mass production and shipping of its first miner expected in the third quarter of 2024. These recent developments could position Bitdeer as a major competitor in the ASIC manufacturing industry.
Furthermore, Bitdeer reported mining 265 Bitcoins in April 2024, marking a 13.7% increase from the previous year. The company plans to boost its self-mining hash rate by approximately 3.4 EH/s by the end of 2024 using its SEALMINER A1 machines. These are recent developments that have been shaping Bitdeer's trajectory in the cryptocurrency mining industry.
InvestingPro Insights
With Cantor Fitzgerald initiating coverage on Bitdeer Technologies Group (NASDAQ: BTDR), investors might be interested in additional metrics and insights from InvestingPro. The company's significant growth in revenue, with a 31.69% increase over the last twelve months as of Q1 2024, signals strong business expansion. This is further supported by an impressive quarterly revenue growth of 64.64% in Q1 2024. Despite not being profitable over the last twelve months, analysts predict that Bitdeer will become profitable this year, which, if realized, could positively impact its valuation metrics.
InvestingPro Tips suggest that Bitdeer's stock price movements are quite volatile, which may attract investors looking for high-risk, high-reward opportunities. Additionally, the company's ability to hold more cash than debt on its balance sheet, combined with liquid assets exceeding short-term obligations, could provide some financial stability amidst the volatility. For investors seeking a deeper analysis, there are 11 additional InvestingPro Tips available, which can be accessed with a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24 for an additional 10% off.
Although the company's P/E Ratio is not applicable, indicating a current lack of profitability, the substantial price uptick over the last six months of 31.35% reflects investor optimism, aligning with Cantor Fitzgerald's positive outlook. With the next earnings date set for August 13, 2024, the market will be watching closely to see if the company's strategic initiatives will lead to the anticipated profitability and contribute to an upward re-rating of the stock as suggested by the firm.
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