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By Gerelyn Terzo, Benzinga
Wall Street firm Cantor Fitzgerald has recognized Bitcoin mining company Bitdeer as a leader in the industry, and as an emerging key player in the high-performance computing sector. Cantor Fitzgerald’s Brett Knoblauch has initiated coverage on the Bitcoin mining stock with an overweight rating. Additionally, Knoblauch assigned a $13 price target, reflecting upside potential of 44% as of mid-June.
In response to the positive note, Bitdeer shares ballooned by 33% to a market capitalization of over $1.2 billion. Buying has been on higher-than-usual trading volume, reaching 4.3 million shares in a display of strong conviction among bullish investors.
Knoblauch is particularly impressed by Bitdeer’s commercial Bitcoin mining capacity, fueled by the expansion of its SEALMINER technology. He believes it could catapult Bitdeer to the top of the heap among publicly traded Bitcoin mining companies as internal mining rig development indicates vertical integration and positions Bitdeer as a key vendor in a niche hardware market.
Cantor’s Knoblauch pointed to several other catalysts fueling his growth outlook on the company, including Bitdeer’s diversified business model. In addition to Bitcoin mining chip production, Bitdeer is engaged in self-mining (via the company’s proprietary account), artificial intelligence (AI)-based cloud computing services and cloud hashrate, a unique business unit that offers mining rig subscription plans and shares mining income with select customers.
Bitdeer boasts half a dozen data centers, which host servers minting newBitcoins into supply, strategically located across the United States, Norway and Bhutan. The company is on pace to increase its hash rate - which measures a network’s computing power and efficiency – by an impressive 3.4EH/s this year. That captured the attention of Wall Street analysts, including Cantor Fitzgerald. Bitdeer’s performance coincides with the batch production of its cutting-edge SEALMINER A1 rigs, boasting a power efficiency of 18.1J/TH.
Bitdeer is in the midst of an aggressive expansion of its data centers comprising the addition of 1,079 MW of power, which stands to bolster its mining speed by close to 60 exahash (EH) per second, enhancing its competitive position even further. As part of this growth, Bitdeer is targeting an increase in its self-mining capacity from 7 EH, currently comprising 1% of global Bitcoin mining, to 30 EH.
With Bitdeer’s stock trading below its 52-week high, Cantor suggests the market isn’t fully appreciating Bitdeer’s potential in this bullish Bitcoin-price environment.
Wall Street Analysts United In Bullish Outlook On Bitdeer Stock In 2024
Cantor Fitzgerald also previously identified Bitdeer as a leading listed Bitcoin miner poised for continued profitability in a post-Bitcoin halving environment. As of early 2024, Bitdeer’s mining cost-per-coin hovered below $18,000, due to its cost and energy efficient mining rig technology coupled with an attractive hashrate. Meanwhile, the Bitcoin price is currently hovering at $64,000 per coin.
Cantor Fitzgerald isn’t the only analyst firm that’s turned more bullish on BTDR shares of late. Earlier this month, ROTH Capital Partners reiterated its buy rating on Bitdeer stock, with a bullish price target of $14 per share attached. ROTH issued the positive outlook in response to Bitdeerr’s recent acquisition of Application-Specific Integrated Circuit (ASIC) design company Desiweminer.
Not to be outdone, fellow analyst firm BTIG in Q1 initiated coverage of Bitdeer stock with a buy rating, citing the company’s “competitive power infrastructure.”
Bitdeer: On The Precipice Of A Breakout
There’s a reason that Bitdeer is getting noticed now. The company appears to be on the precipice of a breakout in which it is advancing closer toward its long-term development targets.
In April, the Bitcoin-halving month, the company was responsible for mining 265 Bitcoins, a year-over-year increase of nearly 14%. In the midst of its growth, Bitdeer’s data centers have maintained stable operations, owing largely to attractive power pricing agreements it has secured for these sites, the company says.
All seven Wall Street analysts covering Bitdeer have assigned buy ratings to the stock. With an average price target of $14.08 per share, the stock is seemingly undervalued with a runway for another 54% in capital appreciation.
Investors who are seeking to gain diversified exposure to the Bitcoin mining sector and the next-generation of ASIC chip design could consider the advice of these Wall Street experts.
Featured photo by lo lo on Unsplash
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