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Bitcoin Miner Bitdeer Technologies Could be a Potential Takeover Target: Benchmark

Jul 21, 2024
    Benchmark said Bitdeer could be a potential takeover targetThe broker raised its price target for the bitcoin miner to $16 from $13.Core Scientific’s deal with AI hyperscaler CoreWeave has helped drive a re-rating of the sector, the report said.
As a seasoned researcher with extensive experience in the technology and mining sectors, I have closely followed the recent developments in the Bitcoin mining industry, particularly the growing interest from AI and high performance computing (HPC) firms in crypto miners’ energy assets.In a research report published on Monday, brokerage firm Benchmark pointed out that Bitdeer Technologies (BTDR), a Bitcoin miner (BTC), has emerged as an appealing potential takeover candidate due to the surging interest from artificial intelligence (AI) and high performance computing (HPC) companies in crypto miners’ energy assets over the past few months.

The broker adjusted its prediction for Bitdeer’s share price to $16, an increase from the previous estimation of $13, while maintaining its recommendation to purchase the stocks. The stock was being traded at around $11.10 prior to the market opening.

The value of Bitdeer’s shares has significantly increased by over 100% in the past two months, according to the report. This surge in value is due in part to the recognition of Bitdeer as a leading Bitcoin miner with an abundant supply of both current and upcoming power capacity. This excess energy capacity can be utilized not only for cryptocurrency mining but also for powering artificial intelligence (AI) and high performance computing (HPC) projects.

As a researcher studying the latest trends in the sector, I’ve noticed an uptick in takeover activity. Most recently, Bitcoin miner Core Scientific (CORZ) received a $5.75 per share offer from cloud computing firm CoreWeave. However, Core Scientific’s management team rejected this proposal, stating that they believe the offer significantly undervalues their company.

According to a conversation with a company executive, Bitdeer is currently holding preliminary discussions with several potential clients in the AI/HPC sector. These conversations are anticipated to deepen once Bitdeer’s management has completed site evaluations to ascertain the most suitable application for their services.

Benchmark revised upward its projections for Bitdeer, taking into account the anticipated impact of its ASIC chip and mining rig projects. The company’s projected revenue for the full year 2025 now stands at $617.5 million, up from the previous estimate of $497 million.

The report noted that the equity multiples for Bitcoin mining have significantly risen over the past few months. This upward trend can be attributed in part to Core Scientific’s recent deal with AI hyperscaler CoreWeave, which has contributed to the sector’s re-evaluation.
Last week, Wall Street heavyweight JPMorgan (JPM) stated in a report that the recent surge in the sector is a sign that investors believe the artificial intelligence (AI) and high performance computing (HPC) potential for bitcoin mining could provide profitable and innovative uses for mining operations.

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2024-07-22 15:47