Bitdeer, a mining company, announced its fourth-quarter financial report, showing continued growth in performance. It also revealed the launch of its first cryptocurrency mining chip, SEAL01. Analysts have given Bitdeer (stock code: BTDR) a buy rating with a target price of $20.
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Launch of First Cryptocurrency Mining Chip
Fourth-Quarter Financial Report Exceeds Expectations
Bitdeer Stock Price at Only $6, Analysts Give Target Price of $20
Bitdeer announced the release of its first cryptocurrency mining chip, SEAL01, which will be seamlessly integrated into its upcoming mining equipment, SEALMINER A1. SEAL01 utilizes advanced 4-nanometer technology.
Bitdeer has assembled an international team specializing in chip design, firmware, and hardware engineering to support the Bitcoin mining community in the opportunities after the 2024 halving event. The company is now ready to begin mass production of mining machines, aiming to provide a one-stop Bitcoin mining solution.
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Bitdeer released a simplified fourth-quarter financial report, showing significantly better performance compared to the same period last year. The key highlights are as follows:
Total revenue was $114.8 million, compared to $77.1 million in the same period last year.
Self-mining income was approximately $46.9 million, compared to $10.6 million in the same period last year.
Cloud computing power revenue was approximately $16.3 million, compared to $19.8 million in the same period last year.
General hosting revenue was approximately $25.2 million, compared to $19.5 million in the same period last year.
Member hosting revenue was approximately $23.4 million, compared to $21.4 million in the same period last year.
The total number of Bitcoins mined in the fourth quarter (self-mining only) was approximately 1,299.
As of now, the average miner efficiency is approximately 31.7 J/TH.
HC Wainwright analyst Mike Colonnese has given Bitdeer (stock code: BTDR) a buy rating with a target price of $20. Colonnese believes that the launch of Bitdeer’s proprietary Bitcoin mining chip, SEAL01, and the corresponding mining equipment, SEALMINER A1, are the core of this optimistic outlook. He expects the company’s foray into manufacturing to bring significant competitive advantages by reducing capital expenditure per unit of computing power and providing better supply chain control.
However, since successfully going public through a reverse merger in April last year, Bitdeer’s stock price has remained below its issuance price for a long time. Although the company has conducted multiple stock repurchase programs, their impact on the stock price has been limited. Furthermore, Bitdeer does not accumulate Bitcoin as part of its operations, usually selling what it mines. As a result, the company does not hold a significant amount of Bitcoin and did not benefit from its recent price surge. Bitdeer closed at $6.83 yesterday.
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Detailed Explanation of Bitdeer’s Business Model
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(This article is not investment advice. Please DYOR)
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Further Reading
Bitdeer Narrows Losses in the Third Quarter, Continues Stock Repurchases, But Stock Price Remains Flat
Mining Company Bitdeer Becomes NVIDIA Partner, Launches Bitdeer AI Cloud Computing Platform