Bitcoin miner Bitdeer Technologies (BTDR) is making substantial strides in blockchain and high-performance computing. Despite the impacts of the Bitcoin halving and turbulent market conditions reflected in its Q3 earnings, Bitdeer is renewing its mining operations by launching a proprietary AISC Bitcoin mining platform. Its new SEALMINER A2 series is expected to drive growth, highlighting the demand for its next-gen crypto mining machines and high-performance computing.
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Recently, Bitdeer announced a private placement of $360 million in Convertible Senior Notes, aiming to finance data center expansion and the development of its ASIC-based mining rigs, among other corporate purposes. BTDR has risen over 167% in the past year, and its potential upside makes it an appealing option in the crypto mining industry.
Bitdeer Launches the SEALMINER 2 Series
Bitdeer Technologies focuses on blockchain and computing and delivers hash rate sharing solutions like Cloud and Hash Rate Marketplace. The company provides complete mining machine hosting solutions and mining data centers for hash rate generation and oversees several computing processes. Bitdeer also mines cryptocurrencies for its own account.
The company recently launched its latest Bitcoin mining machine, the SEALMINER A2 series. The two models in the A2 series, the air-cooling SEALMINER A2 and the hydro-cooling SEALMINER A2 Hydro, employ advanced cooling technologies and excel in power consumption control and hash rate performance that marks significant advancements in power efficiency, technology, and stability compared to its predecessor, the A1.
Bitdeer has recently announced a private placement of $360 million principal amount of 5.25% Convertible Senior Notes due 2029. An additional $40 million principal amount of the notes can also be purchased within 13 days from the issuance date of Nov 26. The net proceeds from this offering will be put towards the cost of the zero-strike call option transaction and cash consideration for concurrent note exchange transactions. The remaining net proceeds will be used for data center expansion, development, and manufacture of ASIC-based mining rigs, working capital, and other corporate purposes.
Bitdeer’s Recent Financial Results
The company reported a disappointing Q3, falling short of top-and-bottom-line expectations. Revenue of $62 million missed analyst projections by $15.45 million, leading to a drop in gross profit from $21.1 million in Q3 2023 to $2.8 million. The net loss of $50.1 million starkly contrasted with the $1.8 million loss in Q3 2023. The GAAP earnings per share (EPS) of—$0.35 missed the mark by $0.23.
However, the company remains optimistic, highlighting key technological advancements and strategic initiatives. In its ASICs business, it reported progress on its SEALMINER mining rigs, including a successful production run of the A2 series. The company is already in talks with potential customers for its SEALMINER A2 series, indicating strong early demand in this multi-billion dollar market.
For its Cloud HPC and AI business, Bitdeer reported 98% utilization in September at its data center in Singapore and is planning an extensive expansion in its global infrastructure. The company has also noted that the decrease in Q3 2024 revenue and adjusted EBITDA was primarily due to the 2024 halving, increased global hash rate, decreased hosting revenue, and increased R&D costs related to the SEAL02 chip.
The company closed the quarter with $291.3 million in cash and cash equivalents and remains committed to its SEALMINER roadmap, self-mining expansion, and leveraging its global 2.5 GW power portfolio.
What Is the Price Target for BTDR?
The stock has been volatile (beta of 2.16), recently trending upward as it climbed roughly 60% over the past three months. It trades in the upper half of its 52-week price range of $4.10 – $14.27 and shows ongoing positive price momentum as it trades above all major moving averages. It looks to be trading at a relative premium to industry peers, with its P/S ratio of 3.6x compared to the Information Technology sector average of 3.11x.
Wall Street analysts have been bullish on BTDR stock, with many recently revising their price targets upward. Based on the cumulative recommendations of eight analysts, Bitdeer Technologies is rated a strong buy overall. The average price target for BTDR stock is $15.50, representing a potential upside of 34.32% from current levels.
Bottom Line on BTDR
Despite enduring turbulent market conditions and reporting disappointing Q3 earnings, Bitdeer Technologies has shown its resilience and innovation by launching its proprietary SEALMINER A2 series. Further, Bitdeer’s recent private placement of Convertible Senior Notes expands the company’s ability to continue developing its ASIC-based mining rigs. BTDR represents an attractive investment opportunity in the crypto-mining industry.
