Monday, Bitdeer Technologies Group (NASDAQ:BTDR) shares, currently trading at $18.50 with a market capitalization of $2.73 billion, saw its stock rating reiterated as a Buy with a stable price target of $22.00 by analysts at Rosenblatt. The endorsement follows Bitdeer's release of their December 2024 Production and Operations update. The company has demonstrated remarkable momentum, with InvestingPro data showing a 200.81% return over the past year.
The report from Bitdeer outlined significant progress in their operations, including the self-mining of 145 Bitcoins. Additionally, the total managed hash rate for the company reached 21.6 EH/s. Rosenblatt's coverage noted that Bitdeer is on schedule to produce 35 EH/s of their SEALMINER A2 rigs by the third quarter of 2025.
A portion of these rigs, approximately 7 EH/s or around 29,000 units, is earmarked for external sales, with shipments expected to commence in March. According to InvestingPro analysis, while the company holds more cash than debt on its balance sheet, it's currently experiencing rapid cash burn, a crucial factor for investors to monitor.
The analyst's review also highlighted Bitdeer's pricing strategy, estimating that the average selling price per terahash (ASP/TH) is approximately $15. Looking ahead, Bitdeer is targeting increased efficiency with their SEAL03 sample wafers expected to achieve 10 J/TH efficiency in the first quarter of 2025. Further advancements are anticipated with the SEAL04 model, which aims for an industry-leading 5 J/TH efficiency by the third quarter of 2025.
Bitdeer's energy capacity has remained steady month-over-month at 896 megawatts, with plans to expand by an additional 1,645MW. Rosenblatt's commentary on the update emphasized Bitdeer's transformative initiatives in mining, infrastructure, and AI, positioning the company for potential growth in the coming year.
The $22 price target set by Rosenblatt is based on a 20x multiple of the company's projected 2025 adjusted EBITDA. The firm's analysis reflects confidence in Bitdeer's strategic direction and anticipated performance. For deeper insights into Bitdeer's valuation and 12+ additional exclusive ProTips, investors can access the comprehensive research available on InvestingPro, which includes detailed analysis of the company's financial health and growth prospects.
In other recent news, Bitdeer Technologies Group has been the subject of several significant developments. The company announced a private offering of $360 million in convertible senior notes due in 2029. The proceeds, anticipated to be around $348.2 million, will be allocated to data center expansion and the development and manufacture of ASIC-based mining rigs.
Despite recent revenues of $99.2 million falling short of analyst expectations, Bitdeer has begun mass production of its SEALMINER A1 and A2 mining machines, contributing to the company's self-mining expansion plans for 2025.
Furthermore, Roth/MKM maintained a Buy rating for Bitdeer and significantly raised its price target to $29.00. The firm was particularly impressed with the progress Bitdeer is making in High-Performance Computing (HPC) and Artificial Intelligence (AI), as well as the rapid traction of its SEALMINER platform. Benchmark and Rosenblatt Securities also upgraded Bitdeer's stock price target, citing the company's impressive performance and potential growth drivers.
Lastly, Bitdeer expects to triple its self-mining capacity to about 23 EH/s by 2025. Deposits for 30,000 units of the air-cooled SEALMINER A2 rigs are anticipated to generate approximately $102 million in revenue from ASIC sales in 2025. These recent developments underscore Bitdeer's strategic initiatives and potential for continued growth.
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