Needham analyst John Todaro maintained Bitdeer Technologies ( BTDR ) with a Buy and raised the price target from $14 to $22.

Todaro raised his price target and 2025 estimates after updating his expectations for machine manufacturing sales. Additionally, the analyst increased his valuation due to his growing confidence in Bitdeer’s high-performance computing opportunities.

He modeled $175 million in machine sales, which includes the previously announced 29,000 unit sale and his estimates for the fourth quarter of 2025.

Also Read: Nvidia and AI Chip Stocks Brace for Impact as Biden Administration Considers New China Export Ban: Report

Todaro assumed a $15/TH sale price throughout 2025 at a production cost of $11/TH, which is in line with peers Canaan Inc ( CAN ) . This added $47 million in EBITDA (partly offset by declines in the hosting business).

The analyst is increasingly excited about Bitdeer’s manufacturing segment, given customs-related issues with competitor Bitmain and the new machine architecture that Bitdeer ( BTDR ) is pioneering, which could lead to the most efficient ASICs on the market in the second half of 2025.

He noted that Bitdeer ( BTDR ) is a high-quality, underappreciated Bitcoin (CRYPTO: BTC) miner. The company presents an attractive, diversified revenue base that will perform well in bitcoin bull and bear market cycles. This diversified model also provides a buffer to prop mining during the bitcoin halving event, which results in block rewards industry-wide declining by 50%.

Additionally, Bitdeer ( BTDR ) ranks in the middle- lower end of public bitcoin miners regarding production costs, offering an attractive gross margin with bitcoin at prices above $50-60k.

Lastly, Todaro noted the stock will re-rate to a higher multiple, more in line with peers based on hash rate expansion in 2025 (fueled by its recent production of new generation mining machines, which Bitdeer ( BTDR ) sources at “production cost”) and its growing presence in U.S. capital markets.

Todaro projected fourth-quarter revenue of $71.0 million and EPS loss of $0.17.

Price Action: BTDR stock is down 8.43% at $16.94 at last check Monday.

Also Read:

Japanese Chipmaker Rapidus Sets Sight on Broadcom to Emulate Taiwan Semiconductor’s Market Dominance

Image via Shutterstock.