On Monday, Needham analysts maintained a Buy rating on Bitdeer Technologies Group (NASDAQ:BTDR).
The adjustment follows Needham's revised projections for the company's machine manufacturing sales and a slightly higher valuation multiple due to growing confidence in Bitdeer's High-Performance Computing (HPC) opportunities.
The analysts project that Bitdeer will generate $175 million in machine sales for the year 2025. This forecast includes the already announced sale of 29,000 units and estimates for Q4 of 2025.
The sales price assumption is set at $15 per terahash (TH), with a production cost of $11 per TH, aligning with industry peers. The expected sales are anticipated to contribute an additional $47 million in EBITDA, despite a partial offset from declines in the hosting business.
Bitdeer's manufacturing segment is drawing particular interest from Needham due to two main factors. Firstly, competitor Bitmain is currently facing customs-related issues, which could benefit Bitdeer. Secondly, Bitdeer is developing a new machine architecture that, according to Needham, might result in the most efficient Application-Specific Integrated Circuits (ASICs) available in the market during the second half of 2025.
The Needham analyst's increased the price target for Bitdeer Technologies Group shares to $22 from the previous $14, while maintaining a Buy rating. Their commentary highlights the robust outlook for Bitdeer's manufacturing capabilities. "We are increasingly excited about BTDR's manufacturing segment given 1) customs related issues with competitor Bitmain and 2) new machine architecture that BTDR is pioneering which could lead to the most efficient ASICs on the market in 2H '25," the analyst stated.
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