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BitDeer launches its own cryptocurrency mining chips, performance growth leads analysts to give a buy rating.

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BitDeer launches its own cryptocurrency mining chips, performance growth leads analysts to give a buy rating.

Mining company Bitdeer released its fourth-quarter financial report, showing continued growth in performance. The company also announced 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.

Launch of First Cryptocurrency Mining Chip

BitDeer has announced the launch of its first cryptocurrency mining chip, SEAL01, which utilizes advanced 4-nanometer technology and will be seamlessly integrated into its upcoming mining device, SEALMINER A1.

BitDeer has assembled an international team specializing in chip design, firmware, and hardware engineering to support the Bitcoin mining community post the 2024 halving event. They are currently preparing for mass production of mining machines, aiming to provide a one-stop Bitcoin mining solution.

Fourth Quarter Financial Report Shows Significant Improvement from Previous Year

BitDeer has released a summarized fourth quarter financial report, demonstrating a substantial improvement in overall performance compared to the previous year. Key highlights include:

  • Total revenue of $114.8 million, compared to $77.1 million in the same period last year
  • Self-mining revenue of approximately $46.9 million, compared to $10.6 million in the same period last year
  • Cloud computing revenue of around $16.3 million, compared to $19.8 million in the same period last year
  • General hosting revenue of about $25.2 million, compared to $19.5 million in the same period last year
  • Member hosting revenue of approximately $23.4 million, compared to $21.4 million in the same period last year
  • Total number of Bitcoins mined in the fourth quarter, limited to self-mining, is around 1,299
  • As of now, the average miner efficiency is approximately 31.7 J/TH

BitDeer Stock Price at Only $6, Analyst Sets Target Price at $20

HC Wainwright analyst Mike Colonnese has given a buy rating for BitDeer, with the stock code: BTDR, and set a target price of $20.

Colonnese believes that the launch of BitDeer's first 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, BitDeer's stock price has remained below its IPO price since successfully going public through a reverse merger last April. Despite multiple stock buyback programs, the effect on boosting its stock price has been limited. Additionally, BitDeer does not accumulate Bitcoin as part of its operations but typically sells what it mines, resulting in holding a small amount of Bitcoin. As a result, this wave has not benefited from the rise in Bitcoin prices. BitDeer closed at $6.83 yesterday.

Understanding BitDeer's Operating Model

This article is not investment advice. Please DYOR.