Amongst a slew of publicly traded Bitcoin mining firms, Cantor Fitzgerald says one agency specifically is being vastly undervalued by the market.
In an fairness analysis report final week, the veteran Wall Avenue funding financial institution mentioned that the inventory of Singapore-based Bitdeer (BTDR) presently has the “lowest implied worth of any miner we cowl” when evaluating the agency’s current value to its expectations for hash fee progress.
“We consider BTDR can greater than 4x its hash fee capability,” wrote Cantor. As of Might 2024, the corporate had a complete hash fee of twenty-two.5 exahashes per second (EH/s) throughout its self mining, cloud mining, and internet hosting companies.
Given the agency’s deliberate addition of 1,079 megawatts of energy throughout its numerous world knowledge facilities, Cantor mentioned its hash fee might improve by one other 59.5 EH/s. That might make it one of many largest publicly traded mining companies, surpassing Marathon Digital (MARA)’s 2024 year-end expectation of fifty EH/s.
The funding financial institution mentioned it expects most of Bitdeer’s new power capability to be accomplished by the tip of 2025, unfold throughout its Norway, Ohio, Texas, and Bhutan services. All through that 12 months, it expects Bitdeer’s EBITDA to be $576.7 million—almost half of its present $1.25 billion market cap.
Based on Cantor, one in every of Bitdeer’s key benefits over different miners is its vertical integration, together with the manufacturing of its personal mining machines. “The margin that the large producers would make off of firms like BTDR would go away,” the analysts wrote, including that Bitdeer might ultimately promote its personal rigs for extra revenue.
Till now, Cantor believes Bitdeer has been undervalued in comparison with different mining companies as a result of it’s a brand new market entrant and has much less of its enterprise purely dedicated to self-mining. Nevertheless, they defined that the market is underestimating these mining-adjacent companies.
“Our base case worth of the business rig enterprise at $18.46/share,” Cantor wrote. “We finally assume this enterprise might be price double what shares are price right now, and that is one thing we’ll get better readability on over the subsequent six quarters.”
BTDR traded for $9.08 on Friday, up 50% over the previous month amid a powerful comeback for numerous Bitcoin mining companies this 12 months.
Cantor estimated in January that the majority public miners’ all-in value to mine one BTC could be effectively beneath the market value of 1 BTC right now ($65,200), which means most miners might stay worthwhile after the halving. Its estimated manufacturing value for Bitdeer, specifically, was strikingly low at simply $17,744 per coin.
Cantor Fitzgerald CEO Howard Lutnick has styled himself a ‘fan’ of Tether, the world’s largest stablecoin supplier, and he claims his funding financial institution holds a lot of the belongings backing its token. Earlier this month, Tether disclosed that it had acquired a 25% stake in Bitdeer, permitting the mining agency to boost $100 million.
Edited by Ryan Ozawa.