- The cryptocurrency mining industry is bustling with activity, and one particular firm is said to be significantly undervalued.
- Veteran investment bank Cantor Fitzgerald has identified a notable discrepancy in the market valuation of Singapore-based Bitdeer Technologies (BTDR).
- “We believe BTDR can more than quadruple its hash rate capacity,” stated Cantor in their equity research report.
Discover why Bitdeer Technologies is the most undervalued crypto miner with potential growth exceeding four times its current capacity.
Cantor Fitzgerald’s Bold Forecast on Bitdeer Technologies
Last week, Cantor Fitzgerald, a seasoned Wall Street investment bank, published an equity research report highlighting that Bitdeer Technologies (BTDR) is currently undervalued compared to its peers. With a present stock price implying the lowest value among covered miners, Cantor’s insights are creating a stir in the crypto mining community.
Hash Rate Growth Projections
According to Cantor, Bitdeer is well-positioned to significantly boost its hash rate capacity. As of May 2024, Bitdeer has achieved an impressive total hash rate of 22.5 exahashes per second (EH/s) across its self-mining, cloud mining, and hosting segments. Following the firm’s planned expansion, its hash rate could soar by an additional 59.5 EH/s, potentially outpacing Marathon Digital’s (MARA) projected 50 EH/s by the end of 2024.
Global Energy Capacity Expansion
Bitdeer’s ambitious plans include adding 1,079 megawatts of power across various global data centers. This expansion, expected to conclude by the end of 2025, will span facilities in Norway, Ohio, Texas, and Bhutan. Cantor projects Bitdeer’s EBITDA to reach $576.7 million in that year, almost half of its current $1.25 billion market capitalization, highlighting the significant growth potential.
Vertical Integration: A Key Competitive Advantage
One of Bitdeer’s standout features is its vertical integration, which includes manufacturing its own mining equipment. This strategy not only cuts costs but could also enable Bitdeer to generate additional revenue by selling mining rigs. Cantor analysts believe this capability positions Bitdeer uniquely among competitors, providing a considerable margin advantage.
Market Underestimation and Future Potential
Cantor’s report suggests that Bitdeer’s diverse business model, which extends beyond self-mining to include significant hosting and cloud mining operations, may contribute to its current undervaluation. The market appears to be underestimating these segments’ contributions to the company’s overall value. Cantor’s base case estimates place the commercial rig business at $18.46 per share, predicting a value potentially double the current share price over the next six quarters.
Recent Market Performance and Strategic Investments
In recent market activity, BTDR traded at $9.08 as of last Friday, marking a 50% increase over the past month amidst a broader recovery in Bitcoin mining stocks. Furthermore, Bitdeer’s cost-efficiency remains impressive, with Cantor estimating its production cost for mining one BTC at only $17,744, significantly below the current market price.
Strategic Partnerships and Investments
Earlier this month, Tether, the world’s largest stablecoin provider, disclosed a 25% stake acquisition in Bitdeer, facilitating a $100 million capital injection. Cantor Fitzgerald CEO Howard Lutnick has expressed a favorable outlook on Tether, emphasizing the investment bank’s substantial holdings of assets backing Tether’s tokens.
Conclusion
In conclusion, Cantor Fitzgerald’s analysis suggests that Bitdeer Technologies holds considerable potential for growth and profitability, bolstered by its vertical integration and substantial expansion plans. With a diversified business model and strategic investments, Bitdeer is well-positioned to emerge as a leading player in the cryptocurrency mining sector. Investors and industry watchers should keep a close eye on Bitdeer’s developments over the coming years.
