Bitcoin Miner Bitdeer Positioned for Success After Halving, Says Benchmark

Benchmark Starts Coverage on Singapore-Based Bitcoin Miner Bitdeer with a Buy Rating and $13 Price Target

Bitdeer ranked as one of the most cost-effective Bitcoin miners in a benchmark study.

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Bitcoin miner Bitdeer is set to become a major player in the industry following the Bitcoin halving event, thanks to its low “all-in mining costs.” Investment banking firm Benchmark believes that Bitdeer’s competitive advantage will allow it to thrive in the post-halving landscape.

In a recent analyst note, Mark Palmer, an analyst at Benchmark, announced that the firm had initiated coverage on Bitdeer Technologies Group and assigned it a “buy” rating. Palmer also set a price target of $13 for the company.

Bitdeer, the Singapore-based Bitcoin mining firm, is a subsidiary of Bitmain, one of the largest manufacturers of Bitcoin mining equipment in the world. Palmer highlighted Bitdeer’s exceptional performance in terms of average power cost, which stands at around $0.04 per kilowatt hour. This places Bitdeer among the lowest-cost mining firms in the market.

The “buy” rating was further supported by Bitdeer’s expansion plans, significant self-mining operations, and its recent foray into the field of artificial intelligence. Palmer predicts that Bitdeer’s stock price will double by 2025, making it an attractive investment option.

Currently, Bitdeer shares are trading at $6.46, experiencing a 7.6% decline over the week and a 13.8% drop for the month, according to Google Finance data. With a market capitalization of $768 million, Bitdeer is currently the seventh largest crypto miner by market value.

Bitdeer shares are trading down nearly 14% on the month. Source: Google Finance

However, not everyone is as optimistic about Bitcoin mining firms, especially in light of the upcoming Bitcoin halving scheduled for late-April. The halving event will cut the Bitcoin rewards paid to miners in half.

Cantor Fitzgerald released a report stating that several Bitcoin mining firms may struggle to remain profitable depending on the price of Bitcoin after the halving. However, at Bitcoin’s current price of $67,700, the report indicates that none of the listed firms will be in the red.

It’s worth noting that publicly traded mining firms have seen a decline in their stock prices in recent weeks, with Marathon Digital, the largest traded Bitcoin miner, and Riot Blockchain, one of its competitors, falling by 33% and 34%, respectively, over the last month.

Mitchell Askew, the head analyst at Blockware Solutions, believes that the drop in miner share prices is due to investor caution ahead of the Bitcoin halving. Investors are wary of purchasing shares in miners before the event, which will reduce mining rewards.

In a positive development, Bitdeer recently announced the successful initial testing of its new 4-nanometer Bitcoin mining chip called SEAL01. This chip has an impressive power efficiency of 18.1 J/TH, surpassing the average power efficiency of around 29 J/TH.

Q&A: More Insights on Bitdeer and Bitcoin Mining

Q: What sets Bitdeer apart from other mining firms?

A: Bitdeer has managed to distinguish itself with its exceptionally low average power cost of $0.04 per kilowatt hour. This places it among the lowest-cost mining firms in the market. Additionally, Bitdeer’s plans for expansion, significant self-mining operations, and its recent entry into the field of artificial intelligence contribute to its competitive edge.

Q: Are there concerns about the profitability of Bitcoin mining firms after the halving?

A: Some experts have raised concerns about the profitability of mining firms post-halving, particularly if the price of Bitcoin remains stagnant or declines. However, at the current Bitcoin price of $67,700, none of the listed firms in a report by Cantor Fitzgerald are expected to be unprofitable.

Q: Why have publicly traded mining firms seen a decline in stock prices recently?

A: The drop in stock prices can be attributed to investor caution surrounding the Bitcoin halving event. Investors are hesitant to buy shares in mining firms before the halving, which will cut mining rewards in half. This uncertainty has led to a decline in miner share prices.

The Future Outlook for Bitdeer and Bitcoin Mining

Despite the concerns surrounding the Bitcoin halving, Bitdeer’s low mining costs and growth prospects position it well for success in the industry. Its focus on expansion and diversification into artificial intelligence ensures future opportunities for revenue generation. As the crypto market continues to evolve, Bitdeer’s strategic initiatives and competitive advantages place it in a favorable position for long-term success.

Investors looking to capitalize on the potential of Bitcoin mining firms should consider Bitdeer as an attractive investment option. With its low mining costs, growth projections, and innovative approach, Bitdeer is poised to thrive in the evolving landscape of the cryptocurrency industry.


References:

  1. Bitdeer’s Market Data on Google Finance
  2. Cantor Fitzgerald’s Report on Bitcoin Mining Firms

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