Three Investment Banks Initiate Coverage On Bitdeer With Buy Ratings And Price Targets Implying Potential Triple-Digit Upside

April 02, 2024 at 08:30 AM EDT

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By Austin DeNoce, Benzinga

Three prominent capital markets firms recently initiated coverage on Bitdeer Technologies Group (NASDAQ: BTDR), a key player in the Bitcoin and high-performance computing (HPC) sector. Bitdeer is known for its diversified and vertically integrated operations that span self-mining, hash rate sharing, AI Cloud services and now Bitcoin mining chip development. Their unique position in the market has caught the attention of Roth/MKM, B. Riley Securities and BTIG, each of which offered its insights and projections on Bitdeer – shedding light on its potential in the rapidly evolving Bitcoin mining landscape.

Roth/MKM's Coverage

Roth/MKM kicked off its analysis of Bitdeer Technologies Group with a bullish stance, awarding it a Buy rating and setting a price target of $14, which suggests a sizable move from its current price of about $7. The firm highlights Bitdeer's ambitious expansion plans, given that Bitdeer aims to increase its capacity to approximately two gigawatts in the foreseeable future. This expansion is viewed as a major growth opportunity, potentially establishing Bitdeer as a formidable force in the mining sector. Despite the capital requirements for scaling operations, Roth/MKM is optimistic about Bitdeer's growth trajectory, citing the company's diversified business segments as a robust investment proposition. Their positive outlook is further buoyed by Bitdeer's potential to significantly boost its mining capacity to enhance its overall position in the Bitcoin mining industry.

B. Riley Securities’ Coverage

The second investment bank shifting its focus to Bitdeer was B. Riley Securities, which also commenced its coverage with a Buy recommendation, forecasting a striking upside of more than 140% with an average one-year price target of $15.30. This optimistic projection is underpinned by an anticipated revenue jump to $381 million for Bitdeer, coupled with a projected non-GAAP EPS of $0.44. The bullish sentiment is also supported by a substantial increase in institutional interest, as indicated by a significant uptick in the number of funds reporting positions in Bitdeer. Last quarter, only four funds held Bitdeer, but that figure has since surged to 53. According to B. Riley Securities, this growing institutional backing, along with a favorable put/call ratio, underscores the financial community's confidence in Bitdeer's future prospects.

BTIG’s Coverage

Lastly, BTIG analyst Gregory Lewis issued a third Buy rating on Bitdeer, with a price target of $15. Lewis points to Bitdeer's established presence as a global Bitcoin miner and its diversified operations, which include a substantial self-mining hash rate and hosting capabilities. With plans to quadruple its self-mining capacity to about 30 EH, leveraging around 1,075 MW of power infrastructure, he believes Bitdeer is well positioned to enhance its competitive edge in the market. Lewis’s endorsement is predicated on Bitdeer's strategic investments in equipment technology and its advantageous power infrastructure, which are expected to reinforce its standing at the lower end of the cost curve.

Coverage Initiations Mark A Key Milestone For Bitdeer

The initiation of coverage by Roth/MKM, B. Riley Securities and BTIG marks a pivotal moment for Bitdeer, reflecting growing confidence in its strategic direction and recognition of its growth potential within the Bitcoin mining industry. With ambitious expansion plans and a focus on diversification and technological advancements like the company’s latest foray into custom mining chips, Bitdeer seems poised to carve out a significant niche in the Bitcoin mining and high-performance computing sectors. The endorsements from these investment banks highlight Bitdeer's potential and they also signal a broader recognition of its role in shaping the future of the industry.

Featured photo by Hans Eiskonen on Unsplash.

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