Bitdeer Powers Up with Buy Rating: Analyst Sees Upside in Diversified Mining

B. Riley Securities analyst Lucas N. Pipes initiated coverage on Bitdeer Technologies Group BTDR with a Buy rating and a price target of $9.

The analyst says that Bitdeer has a diversified digital asset mining platform with operations in the U.S., Norway, and Bhutan.

Bitdeer has significantly reduced its electricity costs over the last nine months largely due to carbon-free, low-cost power at its Bhutan and Norway locations, writes the analyst. 

The analyst views this improvement as well-timed, as the Bitcoin halving is now just weeks away. 

Pipes says that the company is expanding in Norway with a new 175 MW facility expected for completion in the first half of FY25, which will likely further lower electricity costs. 

Overall, the analyst writes that the company is well positioned beyond the halving due to its diversified business model and access to low-cost power.

On March 4, the company announced the successful testing of its BTC mining chip and the analyst expects it to deliver its first-generation miner, similar to BitMain’s T21 model, to the market in fourth-quarter of FY24. 

Pipes estimates EBITDA and EPS of $171.6 million and $0.01, respectively, in FY24. The analyst further assumes an estimated net cash position of $47 million and shares outstanding of 139 million by the end of FY24.

Price Action: BTDR shares are down 1.92% at $6.21 on the last check Tuesday.