The meteoric rise of Bitcoin (BTCUSD) alongside the continued dominance of artificial intelligence (AI) stocks has been a notable narrative on Wall Street throughout 2024. Despite recent volatility, BTC has recently reached new highs surpassing $70,000, driven by the introduction of spot Bitcoin ETFs and optimism surrounding the upcoming “halving” event.
While the introduction of Bitcoin-based ETFs initially diverted attention from crypto mining stocks, analysts at Bernstein contend that miners remain the most viable equity proxy for BTC. They argue that the recent underperformance of these stocks, particularly pre-halving, presents an uncommon opportunity to acquire them at a discount. Here’s a closer examination of one such lesser-known Bitcoin mining company poised for substantial growth according to Wall Street analysts.
Overview of Bitdeer Technologies Stock
Bitdeer Technologies Group (NASDAQ:BTDR) specializes in Bitcoin mining, with a focus on blockchain and high-performance computing. Headquartered in Singapore, the company also provides advanced cloud services catering to clients with significant demand for AI. Bitdeer operates data centers in the U.S., Norway, and Bhutan, with a current market capitalization of $823 million.
Despite a year-to-date decline of 25.9%, BTDR stock has notably underperformed the broader equities market.
Strong Q4 Performance
Bitdeer recently announced its preliminary results for the fourth quarter of the previous fiscal year, reporting revenues of $114.8 million, marking a 49% year-over-year increase. Notably, self-mining revenues surged by over fourfold to $46.9 million in the quarter. The company achieved an EPS of $0.11, a significant improvement from the $0.07 loss per share in the corresponding period of the prior year.
Additionally, Bitdeer ended the quarter with a cash balance of $144.7 million, up 7.6% sequentially, and mined approximately 1,299 Bitcoins, a 19.7% increase from the previous quarter. Full results are anticipated to be released on March 22.
Strategic Initiatives
Bitdeer has undertaken several strategic initiatives to bolster its position in the market. The appointment of founder Jihan Wu as CEO received a positive market response, as did the recent opening of a data center in Bhutan, aimed at reducing operating costs through lower electricity expenses.
Looking forward, the construction of the Tydal data center in Norway, equipped with immersion cooling technology, is expected to enhance efficiency and cost-effectiveness. Furthermore, Bitdeer’s partnership with Nvidia to address the growing demand for AI supercomputing underscores its commitment to diversification and innovation.
Analyst Outlook
Analysts are bullish on Bitdeer stock, with Benchmark initiating coverage with a “Buy” rating and a $13 price target, suggesting an upside potential of approximately 103%. H.C. Wainwright analyst Mike Colonnese echoed this sentiment, highlighting the stock’s undervaluation based on forward enterprise value/revenue multiple, with a $20 price target representing a potential upside of 171.7%.
Overall, unanimous consensus among five analysts rates BTDR as a “Strong Buy,” with a mean target price of $14.50, indicating a potential upside of around 97% from current levels.
Featured Image: Freepik @ micrologia
