Monday - Benchmark has increased the price target for Bitdeer Technologies Group (NASDAQ:BTDR) shares to $16.00, up from the previous $13.00, while maintaining a Buy rating. The firm highlighted the company's recent performance, noting that Bitdeer's share price has more than doubled in the last two months.
This surge is attributed to the recognition of Bitdeer as one of the bitcoin miners with substantial existing and future power capacity, which can be utilized for bitcoin mining or powering artificial intelligence (AI) and high-performance computing (HPC) projects.
The analyst from Benchmark also pointed out Bitdeer's advancements in the development of its proprietary SEAL bitcoin mining chips and SEALMINER mining rigs. These innovations are part of Bitdeer's strategy to reduce costs through vertical integration. The company plans to deploy these technologies for self-mining operations and also aims to supply them to the broader market.
The decision to raise the price target is based on applying a 4x EV/revenue multiple to the firm's FY25E revenue projection of $617.5 million. The analyst's positive outlook is supported by Bitdeer's strategic moves in enhancing its mining capabilities and expanding its market presence with its own mining equipment.
Bitdeer's efforts in developing and planning to market its SEAL mining chips and rigs underscore the company's commitment to growth within the competitive bitcoin mining sector. The vertical integration approach is expected to provide Bitdeer with a cost advantage and potentially increase its profitability.
As Bitdeer continues to focus on leveraging its power capacity for both bitcoin mining and AI/HPC initiatives, the raised price target reflects the firm's confidence in the company's future performance and revenue generation capabilities.
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