Bitdeer Gains Bullish Rating From Cantor Fitzgerald, Sees Significant Stock Surge

Bitcoin mining company Bitdeer (NASDAQ: BTDR) has garnered a bullish rating from the prominent Wall Street firm Cantor Fitzgerald, marking it as a leader in the industry and a key player in the high-performance computing sector. Brett Knoblauch from Cantor Fitzgerald has initiated coverage on Bitdeer with an overweight rating and a price target of $13, showcasing a potential upside of 44% as of mid-June.

The positive note from Cantor Fitzgerald has had an immediate impact on Bitdeer's stock, with shares surging by 33% and the company's market capitalization exceeding $1.2 billion. The trading volume also spiked, reaching 4.3 million shares, underscoring strong investor confidence.

Knoblauch cited Bitdeer's commercial Bitcoin mining capacity and the expansion of its SEALMINER technology as key factors for the optimistic outlook. He believes this could elevate Bitdeer to the top tier among publicly traded Bitcoin mining companies. The company's vertical integration through internal mining rig development positions it as a crucial vendor in the niche hardware market.

Additional catalysts for Bitdeer's growth include its diversified business model, which encompasses Bitcoin mining chip production, self-mining, AI-based cloud computing services, and cloud hashrate. The company's self-mining operations are managed through its proprietary account, offering mining rig subscription plans and sharing mining income with select customers.

Bitdeer's infrastructure includes six data centers located in the United States, Norway, and Bhutan, which collectively host servers that mint new Bitcoins. The company is on track to increase its hash rate by an impressive 3.4EH/s this year, attracting the attention of Wall Street analysts. The latest batch of SEALMINER A1 rigs, featuring a power efficiency of 18.1J/TH, is contributing to this growth.

Bitdeer is also aggressively expanding its data centers, adding 1,079 MW of power to bolster its mining speed by nearly 60 exahash (EH) per second. The company aims to increase its self-mining capacity from 7 EH to 30 EH, which currently represents 1% of global Bitcoin mining.

Despite the stock trading below its 52-week high, Cantor Fitzgerald suggests that the market has yet to fully appreciate Bitdeer's potential, especially in a bullish Bitcoin-price environment. As of early 2024, Bitdeer's mining cost-per-coin is below $18,000, thanks to its efficient mining rig technology and attractive hashrate, while the Bitcoin price hovers around $64,000 per coin.

Other analyst firms share Cantor Fitzgerald's bullish outlook. ROTH Capital Partners reiterated its buy rating on Bitdeer with a price target of $14 per share, following Bitdeer's acquisition of ASIC design company Desiweminer. BTIG also initiated coverage of Bitdeer stock with a buy rating, citing the company's competitive power infrastructure.

Bitdeer is on the cusp of significant growth, advancing closer to its long-term development targets. In April, the company mined 265 Bitcoins, marking a 14% year-over-year increase. Bitdeer's data centers have maintained stable operations, benefiting from favorable power pricing agreements.

All seven Wall Street analysts covering Bitdeer have assigned buy ratings, with an average price target of $14.08 per share, indicating a potential 54% increase in stock value. Investors looking for diversified exposure to the Bitcoin mining sector and next-generation ASIC chip design may find Bitdeer an attractive option.

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