Bitdeer stock faces hurdles but offers upside with strategic innovation – Rosenblatt
On Wednesday, Rosenblatt Securities assumed coverage on Bitdeer Technologies Group (NASDAQ:BTDR) stock, a company specializing in cryptocurrency mining, with a Buy rating and a 12-month price target of $9.00.
The firm’s analyst highlighted Bitdeer’s strategic direction in the semiconductor space and its potential contribution to the infrastructure of next-generation AI and high-performance computing (HPC) data centers.
Bitdeer’s recent second-quarter earnings report for 2024 indicated a weaker-than-expected financial performance, with revenue coming in at $99.2 million, which was below the consensus estimate of $108.4 million. The shortfall was attributed to underperformance in several key areas, including cloud hash rate services and general hosting operations.
Despite the revenue miss, Bitdeer management has expressed confidence in their long-term strategy, which includes an emphasis on expanding self-mining operations and continuous technological innovation. The company’s approach aims to solidify its position within the competitive landscape of cryptocurrency mining.
The analyst’s outlook for Bitdeer acknowledges the current challenges the company faces, such as operational inefficiencies and increased competition. These issues have become more pronounced following the halving event that took place in April 2024, which typically impacts miners’ profitability.
In conclusion, Rosenblatt’s coverage initiation on Bitdeer with a positive rating and a price target of $9.00 reflects the firm’s belief in the company’s strategic initiatives and its relevance to the semiconductor sector, despite recent financial hurdles and competitive pressures.
In other recent news, Bitdeer Technologies Group has been subject to various adjustments in share targets by different analyst firms. H.C. Wainwright lowered its price target to $17 from $20, following Bitdeer’s Q2 earnings report which showed a shortfall in revenue.
Despite the challenges, Bitdeer is planning for an additional 1.6 gigawatts of expansion and is scaling up its self-mining activities with its proprietary mining rig, the SEALMINER.
Benchmark raised its target for Bitdeer to $16.00, emphasizing the company’s advancements in SEAL bitcoin mining chips and SEALMINER mining rigs. The firm also highlighted Bitdeer’s strategic moves in enhancing its mining capabilities and expanding its market presence with its own mining equipment.
B.Riley increased its price target for Bitdeer to $14.00, citing the company’s expansion plans. Bitdeer has announced future plans for growth, with several expansions projected through the end of 2025. The company also secured a 570-megawatt (MW) lease agreement with the Monroe County Port Authority, boosting its power capacity.
Cantor Fitzgerald raised its price target for Bitdeer to $15.00, reflecting confidence in the company’s future performance and revenue generation capabilities.
Bitdeer reported a slight decrease in Bitcoin production, but also announced a significant expansion of its operations, securing a 30-year lease for 570 megawatts (MW), boosting its contracted power capacity to 2.5 gigawatts (GW).
These are recent developments that reflect Bitdeer’s ongoing efforts to expand its operations and enhance its technological capabilities.
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