The meteoric rise of Bitcoin (BTCUSD), along with the continued dominance of artificial intelligence (AI) stocks, have been notable stories on Wall Street throughout 2024. Despite recent volatility, BTC recently hit a new high above $70,000, driven by the introduction of spot Bitcoin. ETFs and optimism surrounding the upcoming “halving” event.
While the introduction of Bitcoin-based ETFs initially drew attention to cryptocurrency mining stocks, analysts at Bernstein argue that miners remain the most viable stock proxy for BTC. They argue that the recent underperformance of these stocks, especially in the lead-up to the halving, presents a rare opportunity to acquire these stocks at a discount. Here’s a closer look at some of the lesser-known Bitcoin mining companies expected to achieve significant growth, according to Wall Street analysts.
Bitdeer Technologies Stock Overview
Bitdeer Technologies Group (NASDAQ:BTDR) specializes in Bitcoin mining with a focus on blockchain and high-performance computing. The Singapore-based company also provides advanced cloud services to customers with high demand for AI. Bitdeer operates data centers in the United States, Norway, and Bhutan and currently has a market capitalization of $823 million.
Despite being down 25.9% year to date, BTDR stock has noticeably underperformed the overall stock market.
Strong fourth quarter performance
Bitdeer recently released its preliminary fourth quarter results, reporting revenue of $114.8 million, up 49% year-over-year. Notably, its own mining revenue more than quadrupled to $46.9 million in the quarter. The company achieved EPS of $0.11, a significant improvement compared to a loss per share of $0.07 in the year-ago quarter.
Additionally, Bitdeer ended the quarter with a cash balance of $144.7 million, up 7.6% sequentially, and mined approximately 1,299 bitcoins, up 19.7% from the previous quarter. Full results will be announced on March 22nd.
strategic initiative
Bitdeer has undertaken several strategic initiatives to strengthen its position in the market. The appointment of founder Jihan Wu as CEO has received a positive market response, as has the recent opening of a data center in Bhutan aimed at reducing operating costs by reducing electricity costs.
In the future, efficiency and cost-effectiveness are expected to improve with the construction of a Norwegian Tydal data center using immersion cooling technology. Additionally, Bitdeer’s partnership with Nvidia to address the growing demand for AI supercomputing highlights Bitdeer’s commitment to diversification and innovation.
analyst forecast
Analysts are bullish on Bitdeer stock, with Benchmark initiating coverage with a “buy” rating and a $13 price target, suggesting an upside potential of approximately 103%. HC Wainwright analyst Mike Colonnese echoed this sentiment, highlighting the stock’s undervaluation based on its enterprise value/earnings multiple, with his $20 price target representing a potential upside of 171.7%.
Overall, the unanimous consensus of five analysts rates BTDR a “Strong Buy,” with an average price target of $14.50, indicating a potential upside of around 97% from current levels.
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