Benchmark Analyst Initiates Coverage of Bitdeer as a Cost-Effective Bitcoin Miner

Benchmark analyst Mark Palmer has initiated coverage of Bitdeer Technologies Group, a Bitcoin mining company, with a “buy” rating and a price target of $13. According to Palmer, Bitdeer stands out for its low “all-in mining costs,” making it highly competitive in the aftermath of the Bitcoin halving.

Bitdeer, a Bitcoin mining firm spun off from Bitmain, boasts one of the lowest average power costs among publicly traded mining companies, at approximately $0.04 per kilowatt hour. Palmer sees this as a key factor in Bitdeer’s differentiation and potential success.

The analyst note highlights Bitdeer’s plans for expansion, significant levels of self-mining, and recent ventures into artificial intelligence as additional reasons for the “buy” rating. Palmer’s price target for Bitdeer’s shares in 2025 is set at double their current value.

Currently trading at $6.46, Bitdeer shares have experienced a 7.6% decline for the week and a 13.8% decrease for the month, according to Google Finance data. Despite this, Bitdeer ranks as the seventh largest crypto miner by total market value, with a market capitalization of $768 million.

While some analysts express caution regarding Bitcoin mining firms, particularly in anticipation of the upcoming Bitcoin halving, Palmer’s analysis suggests that Bitdeer’s low operational costs could buffer against potential challenges.

The recent successful testing of SEAL01, a new 4-nanometer Bitcoin mining chip with exceptional power efficiency, further underscores Bitdeer’s commitment to technological innovation and cost optimization. This chip boasts a power efficiency of 18.1 J/TH, significantly lower than the industry average of around 29 J/TH.