SINGAPORE - Bitdeer Technologies Group (NASDAQ:BTDR), a global blockchain and high-performance computing company, announced on Monday its acquisition of FreeChain Inc. (Desiweminer), a crypto ASIC design company. The deal, involving 20 million Class A ordinary shares of Bitdeer, was finalized on June 3, 2024, following a ten-month due diligence process.
Under the terms of the agreement, a portion of the shares will vest over five or seven years, and half of the shares issued to certain sellers are restricted from transfer for six months post-closing, with the remaining half restricted for twelve months.
Desiweminer's team is set to join Bitdeer’s ASIC design team in Singapore, which is expected to bolster the company's capabilities and speed up product development. Bitdeer's Chief Business Officer, Linghui Kong, expressed enthusiasm about the acquisition, highlighting Desiweminer's achievements in ASIC design and their nearly 30,000 high-performance machines in the market.
The acquisition is aimed at integrating Desiweminer's advanced chip designs, suitable for semiconductor processes at 4nm and below, with Bitdeer's products. Kong anticipates that the merger will enhance their product lineup and significantly advance research and development for next-generation ASICs.
Bitdeer, headquartered in Singapore, operates data centers in multiple countries and offers computing solutions, including cloud services for artificial intelligence applications. Desiweminer specializes in Bitcoin mining equipment and ESG-friendly solutions, with a focus on advanced circuit architecture and rapid production capabilities.
This acquisition is part of Bitdeer's strategic investment into the ASIC business, aiming to drive innovation in the mining industry and create long-term shareholder value. The information for this article is based on a press release statement.
In other recent news, Bitdeer Technologies Group has made several strategic moves that are drawing attention from investors and analysts alike. The Singapore-based blockchain and high-performance computing company recently secured $100 million from Tether International Limited through a private placement deal. This funding is earmarked for expanding data center capabilities and developing ASIC-based mining rigs.
Bitdeer has also been making strides in its mining operations. In April 2024, it reported mining 265 Bitcoins, 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 in Texas and Norway.
Analysts have taken note of Bitdeer's strong financial status, with a robust cash balance of $169.6 million and modest total debt of $22.6 million. Firms such as Benchmark and Roth MKM have maintained a "Buy" rating on Bitdeer, with price targets ranging from $13.00 to $14.00. Rosenblatt has initiated coverage with a "Buy" rating and a higher price target of $10.50, highlighting the company's competitive edge in the market.
As part of its growth strategy, Bitdeer is doubling power capacity and transitioning from hosting to self-mining. The company is also making inroads into AI, having successfully tested its cloud service in Asia. Other key developments include the construction of data centers in Ohio, Norway, and Bhutan, as well as the completion of its NVIDIA (NASDAQ:NVDA) DGX SuperPOD H100 system deployment.
InvestingPro Insights
Bitdeer Technologies Group's strategic acquisition of FreeChain Inc. marks a significant step in their expansion within the blockchain industry. As they integrate advanced chip designs from Desiweminer, it's important for investors to consider key financial metrics and analyst insights. According to real-time data from InvestingPro, Bitdeer holds a market capitalization of $962.49 million USD, which reflects its position in the market post-acquisition. Despite not being profitable over the last twelve months, the company has seen a substantial revenue growth of 31.69% in the same period, signaling potential for future profitability.
Investors should note that Bitdeer's stock price movements have been quite volatile, as indicated by a significant return over the last week of 20.45%. This could be attributed to market reactions to the recent acquisition news or other external factors influencing investor sentiment. Moreover, the company's valuation implies a poor free cash flow yield, which is a point of consideration for those looking at the long-term financial health of the company.
For those looking to delve deeper into Bitdeer's financial health and future prospects, there are additional InvestingPro Tips available. For instance, while Bitdeer is quickly burning through cash, it's noteworthy that their liquid assets exceed short-term obligations, providing some financial flexibility in the near term. Additionally, analysts predict the company will be profitable this year, which could be a turning point for Bitdeer's financial trajectory.
To access a comprehensive list of insights, including more InvestingPro Tips, potential investors can visit InvestingPro's dedicated page for Bitdeer. There are currently 11 additional tips available, offering a more nuanced view of the company's financial standing and market potential. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to receive an additional 10% off.
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