Gold prices edge up amid Fed rate cut hopes; US-Russia talks awaited
On Wednesday, Needham analysts adjusted their outlook on Bitdeer Technologies Group (NASDAQ:BTDR), reducing the price target to $18.00 from the previous $22.00, while still maintaining a Buy rating on the stock. The company’s shares, currently trading at $9.26, have declined nearly 38% in the past week, with InvestingPro data showing the stock is now in oversold territory.
The revision follows Bitdeer’s Q4’24 financial results, which aligned with Needham’s estimates, including revenues of $349.78 million and adjusted EBITDA. Despite the company’s quarterly performance meeting expectations, with a gross profit margin of 18.98%, the stock experienced a sharp decline after the earnings announcement. Analysts at Needham have outlined several factors they believe contributed to the sell-off, suggesting that some of the market reaction may have been excessive. InvestingPro analysis reveals the company maintains strong liquidity, with a current ratio of 14.58, though it’s currently burning through cash rapidly.
Bitdeer’s machine sales are reportedly progressing well and are expected to meet the firm’s 2025 revenue projections of $175 million. However, additional details on the company’s High-Performance Computing (HPC) segment were sparse, with the only significant update being Bitdeer’s ongoing efforts to secure a partner for developing sites in Ohio. Needham highlighted the urgency for miners to capitalize on their time-to-power advantage.
The lowered price target reflects adjustments for anticipated lower revenue, attributed to declining bitcoin prices, and a downward revision in adjusted EBITDA, primarily due to higher research and development expenses than initially forecasted. Notably, a portion of the R&D costs expected in Q1’25 is considered to be a one-time expense.
Needham’s stance remains optimistic about Bitdeer’s long-term prospects, as evidenced by the continuation of the Buy rating despite the reduced price target. The firm’s analysis indicates a belief in Bitdeer’s strategic moves and potential for growth, even as the company navigates the challenges of fluctuating cryptocurrency prices and investment in R&D.
In other recent news, Bitdeer Technologies Group reported its fourth-quarter earnings for 2024, revealing a decline in revenue and a significant miss on earnings expectations. The company posted a revenue of $69 million, falling short of the $72.05 million forecast and marking a decrease from $114.8 million in the same quarter last year. Earnings per share came in at -$3.22, well below the expected -$0.1604, contributing to a steep decline in the company’s stock. Despite these results, analysts at H.C. Wainwright and Benchmark maintained a Buy rating on Bitdeer, though they lowered their price targets to $21 and $24, respectively. The adjustments reflect Bitdeer’s strategic focus on developing bitcoin mining ASIC chips and rigs, which has had a notable impact on the company’s financial outcomes. Bitdeer is also expanding its power capacity, with over 2.6 GW now available, including a recent acquisition of a 101 MW gas-fired power plant in Alberta, Canada. The company plans to increase its self-mining hash rate significantly by the end of 2025, aiming for 40 EH/s. These developments highlight Bitdeer’s commitment to enhancing its position in the competitive bitcoin mining industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.