What happens to stocks if AI loses momentum?
On Tuesday, H.C. Wainwright analyst Mike Colonnese revised the price target for Bitdeer Technologies Group (NASDAQ:BTDR) to $21.00, a decrease from the previous $22.00, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for BTDR range from $17 to $39, with a strong buy consensus recommendation. This adjustment came after Bitdeer reported its fourth-quarter 2024 and full-year results, along with guidance for the fourth quarter of 2025, aiming for 40 EH/s of hash rate capacity. Despite the company’s substantial earnings per share (EPS) miss of -$4.36, which was attributed to $480 million in non-recurring, non-cash charges, Colonnese believes the stock’s recent plunge presents a compelling buying opportunity.
Bitdeer’s shares experienced a sharp drop of nearly 30% following the earnings announcement, in contrast to a modest 1.35% decline in the Nasdaq. InvestingPro data shows a dramatic one-week decline of 38%, with the stock currently trading 66% below its 52-week high of $26.99. Since the beginning of the year, the company’s stock has fallen by 57%, a performance considered to be significantly worse than its peers and the broader market, which is down 1.5% year-to-date. The analyst sees this as an overreaction, noting Bitdeer’s position as a rapidly growing, vertically integrated Bitcoin miner with a strong pipeline of energy assets and an innovative ASIC product roadmap. InvestingPro’s technical analysis indicates the stock is currently in oversold territory.
The company, which has been focusing on the development of its proprietary mining rigs, is expected to become one of the fastest-growing miners in the industry in 2025. While InvestingPro analysis shows the company is quickly burning through cash with negative free cash flow, Bitdeer maintains a strong liquidity position with a current ratio of 14.58. Bitdeer’s management anticipates a capacity growth of over 4.5 times from the current 8.7 EH/s of self-mining hash rate, with the arrival of 3.3 EH/s of SEALMINER A1 rigs in March and an additional 28 EH/s from the second-generation SEALMINER A2 rigs in the fourth quarter of 2025.
Bitdeer’s total power capacity now exceeds 2.6 GW, bolstered by the recent acquisition of a 101 MW gas-fired power plant in Alberta, Canada. Over 1 GW of this capacity is expected to be operational within the year. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels. In light of these developments and despite the price target reduction, H.C. Wainwright reaffirms its Buy rating on Bitdeer Technologies Group. For deeper insights into BTDR’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, BitDeer Technologies Group reported its fourth-quarter earnings for 2024, highlighting a significant decrease in revenue and a notable shortfall in earnings expectations. The company recorded revenue of $69 million, falling short of the $72.05 million forecast and a sharp drop from $114.8 million in the same quarter the previous year. Earnings per share were reported at -$3.22, significantly below the anticipated -$0.1604. The decline in performance is largely attributed to the April 2024 Bitcoin halving and a reduced cloud hash rate, which impacted revenues from cloud and hosting services. Despite these challenges, BitDeer is focusing on developing energy-efficient ASIC miners and plans capital expenditures of $340-$370 million in 2025. The company aims to achieve a self-mining hash rate of 40 Exahash by the fourth quarter of 2025. BitDeer ended the year with $476.3 million in cash and cash equivalents, indicating a strong financial position to support its strategic initiatives. Additionally, the company has expressed openness to partnerships in the HPC/AI sectors, reflecting its strategic expansion plans.
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