On Friday, B.Riley, a financial analyst firm, increased its price target for Bitdeer Technologies Group (NASDAQ: BTDR) shares, a cryptocurrency mining company, to $14.00, up from the previous target of $9.00. The firm has maintained a Buy rating on the stock.
The adjustment follows Bitdeer's report of a slight month-over-month decrease in Bitcoin production, which the company attributes to ongoing optimization at its mining facilities.
Bitdeer, which achieved a 100% utilization rate according to B.Riley's estimates, is actively working on expanding its self-mining hash rate. By the end of 2024, the company aims to increase its rate by approximately 3.4 exahashes per second (EH/s) by installing its proprietary SEALMINER machines. This expansion is expected to bring the company's total self-mining hash rate to 11.8 EH/s.
The company has also announced future plans for growth, with several expansions projected through the end of 2025. However, specific details regarding the timing of these expansions have not been disclosed. The analyst's updated price target takes into account the anticipated increase in mining capacity and the potential impact on the company's performance.
Furthermore, Bitdeer has entered into a lease agreement with the Monroe County Port Authority, announced on June 28, 2024. This agreement secures up to 570 megawatts (MW) of additional power capacity, which will facilitate not only Bitcoin mining but also high-performance computing (HPC).
The implications of this increased power capacity have been incorporated into B.Riley's financial model for Bitdeer, reinforcing the firm's positive outlook on the stock's future.
In other recent news, Bitdeer Technologies Group has made significant operational advancements. The company reported a substantial increase in its global contracted power capacity, now reaching 2.5 gigawatts (GW), following a new 30-year lease agreement with the Monroe County Port Authority in Ohio. Bitdeer has also commenced the conversion of a 100 MW site in Texas to hydro-cooling technology.
Analyst firms Roth/MKM and H.C. Wainwright have maintained a '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.
The company's proprietary ASIC development continues with the SEALMINER roadmap. 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. Bitdeer 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.
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.
InvestingPro Insights
In light of B.Riley's revised price target for Bitdeer Technologies Group (NASDAQ: BTDR), let's take a closer look at some key financial metrics and insights from InvestingPro. Despite a recent decrease in Bitcoin production, the company's aggressive expansion plans and recent lease agreement for additional power capacity signal potential for future growth. According to the latest data, Bitdeer has a market capitalization of $1.4 billion and a significant revenue growth of 31.69% over the last twelve months as of Q1 2024. Furthermore, the company's revenue growth rate for Q1 2024 alone is an impressive 64.64%.
However, the InvestingPro Tips highlight that Bitdeer is quickly burning through cash and is not profitable over the last twelve months, with an adjusted operating income of -$10.81 million. The stock has also experienced considerable volatility, with a 1-week price total return of -11.87%, but it has shown strong returns over the last three and six months, with 68.38% and 65.37% respectively. Analysts predict the company will be profitable this year, which could be a key factor for investors considering the stock.
For those looking for a deeper dive into Bitdeer's financials and strategic outlook, InvestingPro offers additional tips and metrics. Readers can use the exclusive coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With 12 additional InvestingPro Tips available, investors can gain a comprehensive understanding of Bitdeer's financial health and market position.
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