On Friday, Rosenblatt Securities increased the stock price target for Bitdeer Technologies Group (NASDAQ:BTDR) to $22.00, up from the previous target of $17.00, while maintaining a Buy rating on the stock. The firm's decision follows Bitdeer's announcement of its November 2024 Production and Operations update, highlighting the self-mining of 150 Bitcoins and a robust demand for its SEALMINER A2 mining rigs.
Bitdeer's recent update indicates a significant upward revision in the expected hash rate generation for its mining rigs, now anticipated to reach 35 EH/s in 2025, a substantial increase from the previously estimated 18 EH/s. This performance is attributed to the full reservation of all 30,000 units of their initial allocation of mining rigs.
The analyst from Rosenblatt noted the company's strategic moves towards vertical integration, which involve internal ASIC and mining rig development. These efforts are expected to enhance the hash rate, reduce costs, and secure additional power agreements extending through 2025. The rise in Bitcoin prices is also seen as a catalyst for increased demand for more efficient mining rigs and the associated power requirements.
The firm's optimism about Bitdeer's future is reflected in the revised 12-month price target, which is now set at 20 times the firm's 2025 adjusted EBITDA estimates. The new target price is based on Bitdeer's expanded infrastructure capabilities and the higher projected hash rate, which are likely to drive stronger revenue growth and operational scalability for the company.
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