Investment Firms AGP, Northland Initiate Coverage On Bitdeer (NASDAQ: BTDR) With Buy Ratings And Targets Close To 100% Higher – What's Driving The Hype?

With the broader stock market flirting with record territory once again, the bulls seem to be in control for the moment. As of mid-October, the S&P 500 index has advanced 22.4%, fueled by technology stocks like Nvidia NVDA that are leading the generative AI race. Furthermore, even the Dow Jones Industrial Average advanced on Thursday to its fourth record close in five sessions on Oct. 17.

One stock that also seems to have received some attention due to the positive Wall Street sentiment is Bitdeer Technologies Group BTDR, which continues to capture analysts' attention. After debuting on the stock market in 2023 through a business combination with Blue Safari Group, Bitdeer stock has traded in a range of $2.77-$14.77 over the past 52-week period as of Oct. 18.

While technology leaders have been fueling the broader stock market rally in 2024, Bitdeer isn't riding on any coattails. The company feels that there is a great deal for it to be excited about, not least of which is the deployment of half-a-dozen mining data centers across the U.S., Norway and Bhutan, plus additional capacity in the pipeline. This seems to have caused some Wall Street analysts to take notice. 

Most recently, two new equity research firms have initiated coverage on Bitdeer stock, proving they want to document the company's growth story fueled by innovations like cutting-edge Bitcoin mining equipment, global data centers, AI, strategic partnerships and more. Investors who are interested in learning more about Bitdeer's stock can do so here.

Northland Capital Markets Expects Bitdeer Stock To Outperform

Last month, Northland Capital Markets analyst Mike Grondahl initiated coverage on Bitdeer stock with an "outperform" rating. The analyst firm predicts the stock price will nearly double from its then price of $7.07 to $13 per share in the near term. As of Oct. 17, the price of the stock stood at close to $8.

Northland's Grondahl reports that he is encouraged by several tailwinds at Bitdeer's back, including its early-mover positioning, which allows it to capitalize on ongoing trends in growing market segments in Bitcoin mining – including both hosted and self-mining capabilities – as well as high-performance computing (HPC) for AI and machine learning. 

Bitdeer reports that its strategically located data centers in Texas, Ohio, Norway and Bhutan – the latter two of which are new facilities – allow it to benefit from stable, inexpensive power that's key for the efficiency of BTC mining and HPC operations. The analyst touted Bitdeer's milestone of securing a lease agreement with the Monroe County Port Authority, adding up to 570 MW of power capacity to its Ohio facility and demonstrating favorable relationships within these communities. 

Additionally, Bitdeer also reports having a distinct advantage in the competitive landscape given its attractive and unique offerings, including its "BTC/ASIC mining chip and rig production operation" and its SEAL Bitcoin mining chip suite and SEALMINER A1 Bitcoin mining machine, which is on track for mass production in Q4 2024. While the company continues to advance its product pipeline, it's not resting on its laurels and continues to innovate, with a robust pipeline of future upgrades, offerings and expansions to look forward to. 

Image courtesy of Bitdeer 

On fundamentals, Northland's analyst appears to be impressed with Bitdeer's rising gross profit margins amid soaring revenue and the stock's valuation, which he believes is not currently truly appreciating the company's potential. The Northland analyst is also encouraged by Bitdeer's expansion plans, as the company continues to grow its hashrate and contracted power capacity while also remaining positioned to capitalize on booming AI and HPC demand with no signs of relenting.

Alliance Global Partners Advises Investors To Buy Bitdeer Stock

Alliance Global Partners (AGP) Analyst Brian Kinstlinger also initiated coverage on Bitdeer stock in October with a "buy" rating. He has attached a $14 price target, similarly suggesting that the stock will likely almost double from the date the report was published. 

Among the highlights of his maiden report on BTDR stock, Kinstlinger emphasized Bitdeer's self-mining hash rate, which could be set to nearly quadruple between Q3 2024 and year-end 2025. AGP focused strongly on Bitdeer's growing fundamentals as well as its healthy and strong balance sheet as catalysts for the stock.

The AGP analyst also took note of Bitdeer's diversified business operations, which shield it from the inherent volatility in the Bitcoin price, allowing it to capture what he called "favorable economics for several years during bull cycles." Meanwhile, Bitdeer's ASIC miners are also on most stakeholders' radars, given their ability to bolster the company's hash rate and provide a competitive edge among Bitcoin miners. 

On the AI/HPC side, AGP's Kinstlinger believes that Bitdeer has developed the right infrastructure to secure contracts with the potential to bolster the company's revenue streams for multiple years to come. On that note, the analyst predicts revenue of $343 million and $446 million in 2024 and 2025, respectively, as well as EBITDA of $22 million and $66 million in those periods, before any of Bitdeer's ASIC miner sales. AGP is encouraged by the $213 million cash on Bitdeer's balance sheet, far surpassing its $38 million in debt.

Bitdeer To Finish 2024 Strong? 

While there's no crystal ball for the future direction of stock prices, Bitdeer certainly seems to be gaining attention on Wall Street. With growing revenues, EBITDA and profit margins, the company's fundamentals are appealing to multiple analysts. 

Given its specialization in burgeoning areas of technology, including Bitcoin mining, artificial intelligence and high-performance computing, Bitdeer has an early-mover advantage compared to many of its competitors, which could give it staying power for the long haul.  

Investors can learn more about what to expect from Bitdeer here.

Featured photo by TreptowerAlex on Pixabay .

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