Investment banking firm Benchmark recently initiated coverage on Bitdeer Technologies Group, a Bitcoin mining firm spun off from Chinese parent company Bitmain. Analyst Mark Palmer issued a buy rating on Bitdeer, citing its low “all-in mining costs” as a key factor that could enhance its competitiveness following the Bitcoin halving.
Bitdeer stands out in the Bitcoin mining industry with an average power cost of approximately $0.04 per kilowatt hour, one of the lowest among publicly traded mining firms. This favorable cost structure positions Bitdeer well to maintain profitability even amidst challenges such as the Bitcoin halving.
Palmer’s buy rating is further supported by Bitdeer’s expansion plans, high levels of self-mining, and recent foray into artificial intelligence. The company’s strategic initiatives and growth prospects contribute to its attractiveness as an investment opportunity.
Benchmark set a price target of $13 for Bitdeer, reflecting a bullish outlook on the company’s future performance. Palmer believes there is a significant gap between Bitdeer’s discount valuation and its growth potential, making its shares an attractive investment option.
Bitdeer shares are currently trading at $6.46, experiencing declines in recent weeks. This downward trend is consistent with the broader volatility seen in the cryptocurrency market. Some investors remain cautious about Bitcoin mining firms, especially with the impending Bitcoin halving.
Bitdeer recently announced successful initial testing of its new 4-nanometer Bitcoin mining chip, SEAL01, boasting a power efficiency of 18.1 joules per terahash. This development highlights Bitdeer’s commitment to innovation and technological advancement in the mining sector.
Despite market fluctuations and concerns surrounding the Bitcoin halving, Bitdeer’s strong cost structure, expansion plans, and technological innovations position it favorably for long-term growth. Investors may view Bitdeer as a promising player in the evolving landscape of Bitcoin mining.
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