Bitdir is one of the most ‘cost-effective’ Bitcoin miners – Benchmark
Bitcoin miner Bitdir has one of the lowest “all-in mining costs” among publicly traded mining companies, which could make it more competitive following the Bitcoin halving, according to investment bank Benchmark.
In the year In an analyst note published by Cointelegraph on March 14th, analyst Mark Palmer announced that Benchmark has initiated coverage on Bitdeer Technologies Group, issuing a Buy rating and setting a $13 price target on the company.
Bitdir is a Bitcoin (BTC) mining company spun off from Chinese parent company Bitmain, one of the world's largest manufacturers of Bitcoin mining equipment.
Palmer justified the buy rating by identifying the Singapore-based company's average energy costs of $0.04 per kilowatt-hour – one of the lowest costs among publicly traded mining companies.
The rating is supported by the company's expansion plans, high level of self-disbursement and recent push into the field of artificial intelligence, and its price target by 2025 has doubled from its current value.
“In our view, BTDR shares are attractive given the wide gap between their discount valuation and the company's growth prospects,” Palmer wrote.
BitDeer shares are down 7.6% for the week and 13.8% for the month at $6.46, according to Google Finance data. At the time of publication, Bitdir is the seventh largest crypto miner by total value with a capitalization of $768 million.
However, not everyone is bullish on Bitcoin mining companies, especially the Bitcoin halving at the end of April – an event that will halve the Bitcoin-paid rewards to miners.
On January 26, Cantor Fitzgerald released a report stating that many Bitcoin mining companies may struggle to stay profitable based on Bitcoin's price after the halving.
However, according to the graph provided by the company, at Bitcoin's current price of $67,700, none of the firms listed in the report will be in the red.
Related: Bitcoin's Rally to $72K Takes Mining Earnings to Record Highs
Shares in mining companies have tumbled in recent weeks, with the largest publicly traded bitcoin miner Marathon Digital and rival miner Riot Blockchain falling 33% and 34% in the past month.
Blockware Solutions chief analyst Mitchell Askew told Cointelegraph on March 1 that the “most logical” explanation for the decline in mining share prices comes from investors wary of buying shares in miners before bitcoin halves — an event that halves the rewards paid to miners. .
On March 4, Bitdeer announced the successful first test of SEAL01, a new 4-nanometer Bitcoin mining chip with an energy efficiency of 18.1 joules per terahash, which is below the average energy efficiency of 29 J/TH.
Big Questions: Is Measuring Blockchain Transactions Per Second (TPS) In 2024 Foolish?
