Bitdeer Rallies 60% to Best Bitcoin Mining Stock 

Wall Street market firm Cantor Fitzgerald indicated that a 66% surge in Bitdeer (BTDR) stock has catapulted it to the best-performing stock in the past month. Cantor Fitzgerald considers that the Singapore-headquartered Bitdeer rally has outperformed the slew of listed Bitcoin mining companies. 

The veteran investment bank on Wall Street considers Bitdeer to remain overly undervalued by the market. Cantor Fitzgerald laments that Singapore-based Bitdeer (BTDR) stocks suffer the lowest implied value of the miners. The undervaluation is apparent relative to the firm’s expectations for hash rate growth.

Bitdeer Technologies Scales Hashrate

Cantor submitted that they estimate BTDR can realize 4x the hash rate capacity. The bank’s analysts observed that Bitdeer had, by May 2024, realized 22.5 exahashes per second (EH/s) in aggregate hashrate from the self, cloud mining, and hosting services.

Cantor acknowledged the elaborate plans by the mining firm to add 1,079 megawatts (MW) of energy across the global data centers. Its completion could raise the hash rate by 59.5 EH/s, making it among the largest listed mining firms ahead of Marathon Digital (MARA) ‘s 2024 anticipated 50 EH/s.

Since last year, Bitdeer has ramped up efforts to expand its mining operations in Norway, Bhutan, and the US. The Nasdaq-listed miner had, in mid-2023, announced partnering with Druk Holding & Investments (DHI) to unveil mining operations.

Bitdeer chief executive Jihan Wu revealed that the partnership aimed to deploy 100% carbon-free hydroelectric power within the mining site in Bhutan Kingdom. 

Wall Street’s investment bank anticipates the completion of the majority of the new energy capacity of Bitdeer by next year. The bank hailed the geographical distribution of the sites across Norway, Texas, Bhutan, and Ohio. 

Cantor forecasts the Bitdeer’s EBITDA to hit $576.7 million. According to Yahoo Finance data, the figure will match nearly half the company’s $1.35 billion market cap. 

Cantor considers the primary advantage for Bitdeer is its devotion towards vertical integration, mainly producing mining machines in-house. The analysts observed that BTDR eliminates the margin that the leading manufacturers make off other miners. 

Cantor indicated that Bitdeer can sell its rigs to increase its income. The analysts suggest Bitdeer is undervalued compared to other mining firms since it is the latest entrant. 

The analysts consider its undervaluation to arise from a failure to have a business purely committed to self-mining. Cantor explains that the market underestimates mining-adjacent operations. 

Cantor estimates the base case value for the commercial rig operations at $18.46/share. They consider that Bitdeer’s business value is double the share price, a fact that would realize clarity in the subsequent six quarters. 

Bitdeer Stock Surges 

Bitdeer Technologies has the share price exchanging hands at $9.86, up 66% in the past month. The BTDR surge coincides with the strong comeback realized by Bitcoin mining firms. 

Cantor had in a January forecast that listed miners will have their all-in cost for the Bitcoin lower than $65,200. This indicated that miners would retain profitability after the April 20 halving. 

Bitdeer profitability is guaranteed, with its production cost strikingly low at $17,744 per Bitcoin.

Cantor Fitzgerald chief executive Howard Lutnick disclosed his admiration for Tether. The firm is behind the world’s largest dollar-pegged stablecoin, and the investment bank custodies most of the asset that backs the USDT. 

Cantor’s support for Tether comes after the USDT issuer indicated at the onset of June it acquired a 25% stake in Bitdeer Technologies Group allowing the miner to realize $100M in funding. 

Bitdeer matches the Bitfarms Ltd (BITF) stock surge of 66% in the past month to $3.12 and is behind a 125% rally by Core Scientific stock to exchange hands at $9.09. It outperforms CleanSpark (CLSK), whose share is up by 4%, and Cipher Mining’s (CIFR) 30% surge in the past month to exchange hands at $19.17 and $5.24, respectively. 

Editorial credit: rafapress / Shutterstock.com