According to a report by Decrypt, among the many listed Bitcoin mining companies, veteran Wall Street investment bank Cantor Fitzgerald believes that the value of Singapore-based Bitdeer is seriously undervalued by the market.

In an equity research report released last week, Cantor Fitzgerald compared the current price of BitDeer stock (BTDR) to its expectations for computing power growth, saying that the company's stock currently has "the best performance among all the mining companies it covers." lowest implied value".

Cantor wrote: “We believe that BTDR’s hash rate capacity can reach more than 4x.” As of May 2024, BitDeer has a total hash rate of 22.5 exahashes/in self-mining, cloud mining and managed services. s(EH/s). With the company planning to add 1,079 megawatts of power to its data centers around the world, Cantor said its computing power could increase by another 59.5 EH/s, which would make BitDeer one of the largest publicly traded miners, surpassing Marathon Digital by the end of 2024 Expected 50 EH/s.

The investment bank said it expects most of BitDeer's new power capacity to be completed by the end of 2025, spread across its facilities in Norway, the US state of Ohio, Texas and Bhutan. Cantor expects BitDeer’s full-year EBITDA (net earnings before interest, taxes, depreciation and amortization) to reach $576.7 million, nearly half of its current market capitalization of $1.25 billion.

Related reports: “Bhutan’s sovereign fund reaches cooperation with BitDeer and plans to set up a US$500 million fund for cryptocurrency green energy mining”

According to Cantor, one of BitDeer’s key advantages over other mining companies is its vertical integration, including the production of its own mining machines. “The profits that large manufacturers make from companies like BTDR will disappear,” the analyst wrote, adding that Bitdeer could eventually sell its own mining rigs to generate additional revenue.

So far, Cantor believes BitDeer has been undervalued compared to other mining companies because it is a new market player and has less of a purely self-mining part of its business. However, they explained that the market is undervaluing those mining-related businesses.

"We base our valuation on the commercial mining business at $18.46 per share," Cantor wrote. "We ultimately believe the business is likely to be worth twice the current share price, which would be where we see it over the next six quarters." Something to understand more clearly."

BitDeer’s share price has increased by 48% since the beginning of June, closing at $9.08 on Tuesday. The market capitalization of U.S.-listed bitcoin mining companies reached a record $22.8 billion as of June 15, JPMorgan analysts said on Monday. U.S. mining stocks rebounded in the first half of June, driven by rising shares of network computing power and opportunities to diversify artificial intelligence data centers.

Related reports: "JPMorgan Chase: Market value of U.S.-listed Bitcoin mining companies reached record $22.8 billion in June"

Cantor Fitzgerald estimated in January this year that the “all in per coin” cost for most listed mining companies to produce one Bitcoin would be far lower than today’s Bitcoin market price ($65,200), which means that most Miners can remain profitable after Bitcoin halving. In particular, its extremely low production cost estimate for pit fawns is only $17,744 per piece.

Cantor Fitzgerald's listed mining company all in per coin analysis, Source: Matthew Shultz

Cantor Fitzgerald CEO Howard Lutnick has said that he is 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 held a 25% stake in Bitdeer, with the significant increase in Bitdeer’s stake being the result of its recent $100 million private placement deal with the miner.

This article Cantor Fitzgerald believes that BitDeer stock is seriously undervalued and expects significant growth in computing power. First appeared on Zombit.