On Thursday, Benchmark initiated coverage on Bitdeer Technologies Group (NASDAQ:BTDR) with a Buy rating and a price target of $13.00. The firm's positive outlook on the Singapore-based company is influenced by its unique position in the bitcoin mining industry, following its public debut through a SPAC merger in April 2023.
Bitdeer has established a significant global presence with six data centers located in the United States, Norway, and Bhutan. Benchmark highlights Bitdeer's competitive advantage, citing its scalable infrastructure capable of maintaining one of the lowest all-in mining costs in the sector, at an average power cost of approximately $0.04 per kWh.
The company's diverse revenue streams are also a factor in the firm's favorable rating. Bitdeer's business model includes self-mining, hash rate sharing, and hosting services. Further enhancing its market differentiation, Bitdeer has recently expanded into artificial intelligence (AI) and high-performance computing (HPC) solutions, as well as into the design and manufacture of advanced mining rigs.
Benchmark's price target is based on a 3x enterprise value/revenue multiple applied to their fiscal year 2025 estimated revenue of $497 million. The firm believes that Bitdeer's shares are currently undervalued and that there is a significant gap between the market's valuation and the company's growth potential.
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