Home CryptocurrencyAltcoin Bitdeer is among the most 'profitable' Bitcoin miners: Benchmark

Bitdeer is among the most 'profitable' Bitcoin miners: Benchmark

by SuperiorInvest

Bitcoin (BTC) miner Bitdeer has one of the lowest “total mining costs” of publicly traded mining companies, a factor that could make it more competitive following the Bitcoin halving, according to the investment banking firm Benchmark.

In a March 14 analyst note seen by Cointelegraph, analyst Mark Palmer announced that Benchmark had initiated coverage of Bitdeer Technologies Group, issuing a “buy” rating on the company and setting a price target of $13.

Bitdeer is a Bitcoin mining company spun off from Chinese parent company Bitmain, one of the largest manufacturers of Bitcoin mining equipment in the world.

Palmer justified his buy rating by saying that the Singapore-based company had differentiated itself with an average energy cost of about $0.04 per kilowatt hour, one of the lowest costs among publicly traded mining companies.

The rating was also supported by the company's expansion plans, high levels of self-mining and a recent push in the field of artificial intelligence, with its 2025 price target doubling from its current price.

“In our view, BTDR stock is attractive given the large gap between its discount valuation and the company's growth prospects,” Palmer wrote.

Bitdeer shares are currently changing hands for $6.46, down 7.6% for the week and 13.8% for the month according to Google Finance data. At the time of this publication, Bitdeer is the seventh largest crypto miner by total market value, with a market capitalization of $768 million.

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

However, not everyone is bullish on Bitcoin mining companies, especially with the Bitcoin halving scheduled for the end of April, an event that halves the Bitcoin-denominated rewards paid to miners.

On January 26, Cantor Fitzgerald published a report outlining that several Bitcoin mining companies may have difficulty maintaining their profits depending on the price of Bitcoin after the halving.

Cantor Fitzgerald calculated in January the price of Bitcoin necessary for miners' profitability. Source: Cantor Fitzgerald

However, according to the chart provided by the company, at the current Bitcoin price of $67,700, none of the companies listed in the report will be in the red.

Related: Bitcoin's rally to $72,000 brought miners' income to all-time highs

Shares of publicly traded mining companies have plummeted in recent weeks; The largest publicly traded Bitcoin miner, Marathon Digital, and its smaller rival, Riot Blockchain, fell 33% and 34%, respectively, in the last month.

Blockware Solutions chief analyst Mitchell Askew told Cointelegraph on March 1 that the “most logical” explanation for the decline in miners' stock prices came from investors becoming increasingly cautious about to buy shares of miners ahead of the Bitcoin halving, an event that halves the rewards paid to miners. .

On March 4, Bitdeer announced the successful initial testing of SEAL01, a new 4-nanometer Bitcoin mining chip with a power efficiency of 18.1 J/TH, which is below the average power efficiency of around 29 J/TH. TH.

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