Investment banking firm Keefe, Bruyette & Woods (KBW) has initiated coverage on Bitcoin miner Bitdeer Technologies Group with an outperform rating and a price target of $26.50, representing a 34.1% upside from its current levels.

An ‘outperform’ rating means analysts expect a stock to perform better than the market or its industry peers over a given period.

Analysts noted Bitdeer’s flexible mining strategy, new mining hardware, expansion into AI computing, and strong leadership as reasons for their bullish outlook.

“Bitdeer has established a differentiated business model that offers the flexibility to align its strategy with the future direction of the market,” read the analyst note. “If mining profits rise, Bitdeer can mine more Bitcoin itself using its own hardware. If profits shrink, it can rent out mining power to others and secure long-term deals.”

According to the analysts, Bitdeer combines self-mining, hosting services, cloud hashrate, and its own Application-Specific Integrated Circuit (ASIC) hardware manufacturing business, giving it an advantage in cost efficiency and revenue diversification.

ASIC hardware breakthroughs

Bitdeer is about to launch high-efficiency Bitcoin mining machines that use less electricity but produce more Bitcoin. Their newest Seamliner A4 model is expected to be twice as efficient as today’s top machines, according to analysts.

"Bitdeer has outlined a progressive roadmap to mass commercialization of industry-leading mining equipment and anticipates the release of several iterations of hardware throughout 2025, including the SEALMINER A4 ASIC that is projected to have a 5.5-6 J/TH efficiency profile."

The company has already secured materials to build enough machines to generate 35 Exahashes per second (EH/s) of mining power — a measure of how fast Bitcoin transactions are processed — and 20% of that capacity is already reserved by a customer, meaning demand is strong even before launch.

Beyond crypto mining, Bitdeer is expanding into AI and high-performance computing (HPC).

Bitdeer could rent out computing power for AI, cloud storage, and other high-tech applications.

Market outlook

KBW values Bitdeer at $26.50 per share based on its expected growth in mining, hardware sales, and AI expansion.

As of 10:03 am ET, BTDR was trading at $17.12, up 2.69% and a market cap of $3.295 billion.

Analysts project Bitdeer’s 2025 revenue at $657.6 million and Adjusted EBITDA at $137.5 million, which is 1.9% higher and 23.1% lower than consensus estimates, respectively. The firm’s expected EBITDA margin of 20.9% is 3.6 percentage points above the market average, indicating strong operational efficiency.