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Needham began coverage of Bitdeer Technologies (NASDAQ:BTDR) stock rated Buy on Monday as analyst John Todaro believes the company is well positioned to weather the negative effects of bitcoin’s (BTC-USD) halving event, citing the benefits of diversification.
“No revenue vertical has a share of more than 40%,” Todaro wrote in a note, which “will help buffer the industry-wide decline in self-mining revenues after the halving on the 24th and during bear markets when prices of BTC will decrease.”
He added that after the halving, Bitdeer (BTDR) will have favorable bitcoin (BTC-USD) production costs, estimated at around $38,000.
Additionally, “we expect the stock’s discount relative to competitors on both an EV/EBITDA and EV/hash rate basis will be eliminated as the company increases its hash rate, improves machine efficiency with new internal systems and will increase its presence in U.S. capital markets by shifting its corporate focus away from Asia.”
Todaro’s Buy rating diverges from the SA Quant system’s Hold rating and aligns with Wall Street analysts’ average rating of Strong Buy.
Even with the optimistic coverage, BTDR dropped by 4.8% in Monday morning trading.