Bitdeer Poised for Advantage Post-Bitcoin Halving with Low Mining Costs: Benchmark Report
Summary:
Bitdeer, a Bitcoin miner, has some of the lowest "all-in mining costs" among publicly traded mining firms, potentially giving it an edge after the Bitcoin halving. Investment banking firm Benchmark has initiated coverage on Bitdeer, setting a $13 price target for the company. The rating is backed by several factors, including Bitdeer's plans for expansion, high levels of self-mining, and a recent foray into artificial intelligence. Bitdeer's stocks currently trade at $6.46, marking a 7.6% weekly and 13.8% monthly decline per Google Finance data.
Bitdeer, a Bitcoin (BTC) miner, boasts some of the most competitive "all-in mining costs" among publicly traded mining companies, a feature that could strengthen its position in the wake of the Bitcoin halving, as per an analysis by investment bank, Benchmark. In an analyst note dated March 14 as seen by Cointelegraph, analyst Mark Palmer revealed that Benchmark has begun coverage on Bitdeer Technologies Group, designating a "buy" rating for the firm and setting a target price of $13. Bitdeer, a spin-off from its Chinese parent company Bitmain, a leading Bitcoin mining equipment producer globally. Palmer attributes his buy endorsement to the Singapore HQ Company's average power cost of roughly $0.04 per kilowatt hour – one of the bottom-most expenses among publicly traded mining enterprises. The rating gets further endorsement from the firm's growth strategies, considerable self-mining practice, and a fresh venture into artificial intelligence — doubling its price target for 2025 from today's rate. "BTDR stocks are lucrative, in our opinion, given the wide divergence between their discount valuation and the firm's growth potential,” Palmer expressed. Currently, Bitdeer stocks are trading at $6.46, down 7.6% weekly and 13.8% monthly, according to Google Finance data. Upon release, Bitdeer is the seventh most significant crypto miner based on market total value, with a market capitalization of $768 million. Bitdeer shares underwent a nearly 14% drop in the month. Source: Google FinanceOn the contrary, not everyone maintains an optimistic view about Bitcoin mining companies, especially with the impending Bitcoin halving due at the end of April — an event that cuts the Bitcoin-paid rewards for miners in half. Cantor Fitzgerald on Jan. 26 released a report stating that several Bitcoin mining companies might find it challenging to stay profitable post the halving, depending upon Bitcoin's price. Cantor Fitzgerald determined the Bitcoin price required for miner profitability in January. Source: Cantor FitzgeraldNevertheless, as suggested by the company's chart, none of the businesses mentioned within the report will be at a loss at Bitcoin's present price of $67,700. Relate: Record heights hit by Bitcoin's rally to $72K in miner revenueShares in publicly traded mining companies have seen a decline recently, with the largest traded Bitcoin miner Marathon Digital, and its competitor Riot Blockchain, witnessing a drop of 33% and 34% respectively in the past month. Mitchell Askew, chief analyst at Blockware Solutions, revealed to Cointelegraph on March 1 that investors were growing jittery about purchasing shares in miners ahead of the Bitcoin halving, which halves the rewards given to miners, is the "most plausible" reasoning for dropping miner share prices. Bitdeer announced the successful initial testing of SEAL01 on March 4, a new 4-nanometer Bitcoin mining chip with an 18.1 J/TH power efficiency, which is less than the standard power efficiency of nearly 29 J/TH. Leading Question: Is gauging blockchain transactions per second (TPS) pointless in 2024?
Published At
3/15/2024 8:47:39 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.