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B.Riley bullish on Bitdeer, sets $9 shares target on mining and power cost strategy

EditorEmilio Ghigini
Published 2024-03-12, 05:38 a/m
© Reuters.
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On Tuesday, Bitdeer Technologies Group (NASDAQ: BTDR), a diversified digital asset mining company, received a Buy rating from B.Riley with a 12-month shares price target set at $9 per share. The firm highlighted Bitdeer's operations across the United States, Norway, and Bhutan, emphasizing the company's three main business lines, which include self-mining with a hash rate of 6.7 EH/s, hash rate sharing at 1.7 EH/s, and a hosting service with a hash rate of 12.6 EH/s.

These services offer customers various ways to engage with digital asset mining, from direct participation to income sharing and comprehensive hosting solutions.

Bitdeer is also developing an AI business segment and producing its own ASIC as a product segment. The company has made significant strides in reducing electricity costs, especially at its facilities in Bhutan and Norway, which benefit from carbon-free and low-cost power. This reduction in costs comes at a strategic time as the Bitcoin halving event is approaching in the coming weeks.

The company's expansion plans include the construction of a new 175 MW facility in Norway, which is expected to be completed in the first half of 2025. This facility is anticipated to contribute to further reductions in electricity expenses. Bitdeer's goal is to increase its total capacity to 2,024 MW by the end of 2025, which could potentially bring the company's total hash rate to 80 EH/s across all business segments.

B.Riley sees Bitdeer's diversified business model and access to low-cost power as key advantages that will position the company favorably beyond the upcoming Bitcoin halving. The analyst firm's positive outlook is reflected in the Buy rating and the price target, suggesting confidence in Bitdeer's future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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