Benchmark initiated coverage on Bitdeer this week with a price target implying 150% upside, betting that the Bitcoin miner's push into AI infrastructure will pay off. The firm sees the company's dual focus on crypto mining and high-performance computing as a way to ride two booming markets at once.
Why Benchmark is bullish
The analyst firm argues that Bitdeer isn't just a mining stock anymore. Its expansion into AI data centers could open a second revenue stream that's less tied to Bitcoin's price swings. Benchmark's math suggests the market hasn't fully priced in that potential.
The AI pivot
Bitdeer has been repurposing its mining facilities to host AI workloads, tapping into the same demand for compute that's been driving Nvidia's sales. The company has also been building new data centers designed for AI from the ground up. That's a different business from mining, with different customers and different margins.
Execution is the catch
The thesis hinges on Bitdeer actually delivering. Building AI infrastructure is capital-intensive, and the industry is crowded with hyperscalers and specialized providers. Power costs, supply chain delays, and regulatory hurdles could all slow the rollout. Benchmark acknowledges that the upside depends on execution, not just the narrative.
What to watch
Investors will be watching Bitdeer's next earnings report for updates on its AI contracts and construction timelines. The company has said it expects to bring new capacity online in phases, and any delays could test the market's patience. For now, Benchmark's call is a bet that the pivot works.
