Benchmark Disagrees: Bitdeer's 20% Crash Is 'Overreaction' Amid AI Ambitions

Bitdeer Technologies Group (NASDAQ:BTDR) stock took a hit on Monday, plummeting over 20% in value. However, Benchmark analyst Mark Palmer believes this decline is an 'overreaction' and reiterated its Buy rating with a $22 price target, implying a potential upside of 153%.

According to Palmer, the selloff was triggered by Bitdeer's disclosure of a new $1 billion shelf registration, which spooked investors who were concerned about dilution. However, Palmer pointed out that during its earnings call, Bitdeer confirmed it intends to use non-dilutive, project-level financing wherever contracted cash flows support it.

Bitdeer reported impressive Q2 revenue of $228.8 million, a 47% year-over-year increase, while adjusted EBITDA surged 575% year-over-year to $31.1 million, driven by Bitcoin (BTC) mining efficiency gains. Palmer argued that Bitcoin mining is more than just keeping the lights on at Bitdeer; it generates all of the company's revenue, covers operating costs, and directly funded the infrastructure behind its largest AI deal to date, a $4.7 billion agreement with Volta Tydal AS.

Needham cut its price target to $20 from $22 while keeping its Buy rating, citing concerns about Bitdeer's pipeline, which is not as strong as initially expected. However, Needham also modestly raised its 2027 adjusted EBITDA estimate on improved mining margins and lifted its share count estimate.