Benchmark keeps Bitdeer at Buy with $22 target as mining funds AI buildout

Benchmark keeps Bitdeer at Buy with $22 target as mining funds AI buildout

Tue, August 11, 2026 at 9:59 PM GMT+3 2 min read

• BTDR +3.80%

Benchmark analyst Mark Palmer reiterated a Buy rating and $22 price target on Bitdeer (NASDAQ: BTDR) on Tuesday, citing mining cash flow that can help finance its AI infrastructure expansion. The target implies about 153% upside from the $8.70 price listed in the report.

For the second quarter, Bitdeer reported revenue totaling $228.8 million, an increase of 47% year over year and 21% sequentially. Adjusted EBITDA rose 575% from a year earlier to $31.1 million, though Bitdeer recorded a $92.3 million net loss and a negative 3.7% gross margin.

Palmer said mining generated the revenue and cash flow supporting Bitdeer's current operations, reducing its near-term dependence on equity for AI development. Bitdeer nevertheless raised about $457 million through its ATM during the quarter, ending June with $496.3 million of cash, equivalents and restricted cash against $1.8 billion of borrowings.

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Bitdeer shares fell more than 20% on Monday after it transferred its ATM program to a new shelf with $1 billion of offering capacity. Palmer called the reaction excessive because management intends to use project-level financing where contracted cash flows support it, including at Tydal in Norway.

Bitdeer last week signed a 16-year colocation and services agreement covering 121 IT MW at Tydal, supported by about 133 gross MW. The agreement carries approximately $4.7 billion of scheduled revenue, a 3% annual escalator and an average rate of roughly $202/kW-month. Bitdeer estimates an NOI margin near 90%.

Palmer said prior mining investment funded Tydal's substation, site pad and interconnection, leaving about $500 million of remaining capex, or roughly $4 million per IT MW. He also argued that active mining preserves utility relationships and occupies energized capacity while Bitdeer seeks AI/HPC tenants across its 2.98 GW power portfolio.

Benchmark's sum-of-the-parts valuation includes Tydal, AI Cloud, SEALMINER manufacturing and bitcoin self-mining. The firm had lowered its target to $22 from $27 last week before reaffirming it following the second-quarter report.

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Bitdeer ended June with 73 EH/s of self-mining capacity across about 243,000 active rigs. It mined 2,694 bitcoin during the quarter, while fleet efficiency improved to 15.8 J/TH and average electricity cost declined sequentially to $44/MWh.