Wall Street firm Cantor Fitzgerald has recognized Bitcoin mining company Bitdeer (NASDAQ: BTDR) as a leader in the industry and an emerging key player in the high-performance computing sector. Cantor Fitzgerald’s analyst Brett Knoblauch initiated coverage on the Bitcoin mining stock with an overweight rating and a $13 price target, suggesting a potential upside of 44% as of mid-June.
Following the positive note, Bitdeer shares surged by 33%, elevating its market capitalization to over $1.2 billion. Trading volume spiked to 4.3 million shares, indicating strong investor confidence.
Knoblauch highlighted Bitdeer’s impressive commercial Bitcoin mining capacity, driven by the expansion of its SEALMINER technology. He believes this could position Bitdeer at the forefront of publicly traded Bitcoin mining companies, emphasizing the company's vertical integration and its role as a key vendor in the niche hardware market.
Several catalysts contribute to Knoblauch’s optimistic outlook, including Bitdeer’s diversified business model. Apart from Bitcoin mining chip production, Bitdeer engages in self-mining through the company’s proprietary account, AI-based cloud computing services, and cloud hashrate, a business unit offering mining rig subscription plans and sharing mining income with select customers.
Bitdeer operates half a dozen data centers across the United States, Norway, and Bhutan, minting new Bitcoins into supply. The company aims to increase its hash rate by 3.4EH/s this year, a metric that caught the attention of Wall Street analysts. Bitdeer’s performance is bolstered by the production of its SEALMINER A1 rigs, which boast a power efficiency of 18.1J/TH.
The company is aggressively expanding its data centers, adding 1,079 MW of power. This expansion could enhance its mining speed by nearly 60 exahash (EH) per second, further strengthening its competitive position. Bitdeer targets increasing its self-mining capacity from 7 EH to 30 EH, currently making up 1% of global Bitcoin mining.
Despite trading below its 52-week high, Cantor suggests the market may not fully appreciate Bitdeer’s potential, especially in a bullish Bitcoin-price environment.
Other analyst firms share Cantor Fitzgerald's bullish outlook on Bitdeer. Earlier this month, ROTH Capital Partners reiterated its buy rating with a $14 price target, following Bitdeer’s acquisition of ASIC design company Desiweminer. BTIG also initiated coverage with a buy rating, citing the company’s “competitive power infrastructure.”
Bitdeer appears on the verge of a breakout, advancing towards its long-term development goals. In April, the Bitcoin-halving month, the company mined 265 Bitcoins, a 14% year-over-year increase. Bitdeer’s data centers have maintained stable operations, supported by 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, suggesting a potential for 54% capital appreciation. Investors seeking diversified exposure to Bitcoin mining and next-generation ASIC chip design might consider following the advice of these Wall Street experts.
