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Needham analyst John Todaro argued Bitdeer Technologies (NASDAQ:BTDR) with a purchase and went up the price target $14-$22.
Todaro raised its price target and 2025 estimates after upgrading its machine manufacturing sales expectations. Additionally, the analyst raised his rating due to his growing confidence in Bitdeer’s high-performance computing opportunities.
It modeled $175 million in machine sales, which includes the previously announced sale of 29,000 units and its estimates for the fourth quarter of 2025.
Todaro assumed a sales price of $15/TH through 2025 at a production cost of $11/TH, which is in line with peers. Canaan Inc (NASDAQ:CAN). This added $47 million in EBITDA (partially offset by declines in the hosting business).
The analyst is increasingly bullish on Bitdeer’s manufacturing segment, given customs-related issues with competitor Bitmain and the new machine architecture that Bitdeer is pioneering, which could lead to the most efficient ASICs on the market during Q2 half of 2025.
He noted that Bitdeer is a high-quality, underappreciated product Bitcoin (CRYPTO: BTC) miner. The company presents an attractive and diversified revenue base that will perform well in bitcoin bull and bear market cycles. This diversified model also provides a buffer to support mining during the bitcoin halving event, which causes industry-wide block rewards to drop by 50%.
Additionally, Bitdeer is at the mid-low end of public bitcoin miners in terms of production costs, offering an attractive gross margin with bitcoins priced above $50-60,000.
Finally, Todaro noted that the stock will be revalued at a higher multiple, more in line with its peers based on hash rate expansion in 2025 (driven by its recent mining machine production of next generation, which Bitdeer obtains at “cost of production”) and its growing presence in the US capital markets.
Todaro projected fourth-quarter revenue of $71.0 million and an EPS loss of $0.17.
Price action: Shares of BTDR traded down 8.43% to $16.94 as of last check on Monday.
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This article Bitdeer’s Growth Driven by Strong Machine Sales, Efficient ASICs, Diversified Revenue and High-Performance Computing Potential: Analyst originally appeared Benzinga.com
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