According to Decrypt, among the many publicly traded Bitcoin mining companies, veteran Wall Street investment bank Cantor Fitzgerald believes that the value of Bitdeer, headquartered in Singapore, is severely undervalued by the market.
In a stock research report released last week, Cantor Fitzgerald compared the current price of Bitdeer’s stock (BTDR) with its expected hash rate growth, stating that the company’s stock currently has the “lowest implied value” among all the mining companies they researched.
Cantor wrote, “We believe Bitdeer’s hash rate capacity can reach over 4 times.” As of May 2024, Bitdeer has a total hash rate of 22.5 exahashes/s (EH/s) in self-mining, cloud mining, and hosting services. Considering the company’s plan to increase power by 1,079 megawatts in its data centers worldwide, Cantor said their hash rate could increase by another 59.5 EH/s, making Bitdeer one of the largest publicly traded mining companies, surpassing Marathon Digital’s expected 50 EH/s by the end of 2024.
The investment bank expects most of Bitdeer’s new power capacity to be completed by the end of 2025, with facilities in Norway, Ohio, Texas, and Bhutan. Cantor forecasts Bitdeer’s EBITDA to reach $5.767 billion for the year, close to half of its current $12.5 billion market value.
Cantor mentioned that one of Bitdeer’s key advantages over other mining companies is its vertical integration, including the production of its own mining machines. Analysts wrote, “The profits that large manufacturers earn from companies like Bitdeer will disappear.” They added that Bitdeer could eventually sell its mining machines for additional revenue.
So far, Cantor believes that Bitdeer has been underestimated compared to other mining companies because it is a new market participant and a smaller portion of its business is dedicated to self-mining. However, they explain that the market is underestimating businesses related to mining.
Bitdeer’s stock price has risen by 48% from early June to date, closing at $9.08 this Tuesday. Morgan Stanley analysts stated on Monday that as of June 15, the market value of U.S.-listed Bitcoin mining companies reached a record $22.8 billion. The U.S. mining stocks rebounded in the first half of June due to the increase in Internet computing power and the diversification opportunities of AI data centers.
Cantor Fitzgerald estimated in January that most publicly traded mining companies’ “all-in per coin” cost of producing one Bitcoin would be significantly lower than today’s market price of Bitcoin ($65,200), meaning most miners could remain profitable after Bitcoin halving. Especially with their extremely low production cost estimate for Bitdeer, only $17,744 per coin.
Cantor Fitzgerald’s analysis of publicly traded mining companies’ all-in per coin cost, source: Matthew Shultz
Cantor Fitzgerald CEO Howard Lutnick has expressed himself as a “fan” of Tether, the world’s largest stablecoin issuer, and claimed that Cantor Fitzgerald holds most of the assets supporting USDT. Earlier this month, Tether disclosed that it holds a 25% stake in Bitdeer, a significant increase in Bitdeer’s ownership as a result of their recent $100 million private placement deal with the mining company.
