One derivative play on Nvidia is a buying opportunity that can more than double from current prices, according to Benchmark. Analyst Mark Palmer initiated coverage of Bitdeer Technologies with a buy rating in a report out Thursday. The Singapore-based cryptocurrency mining company only went public last year through a special purpose acquisition company, or SPAC, but Palmer said Bitdeer, which has six data centers across the U.S., Norway and Bhutan, has a compelling growth outlook. That view is driven in part by a key partnership with Nvidia that will help Bitdeer expand into artificial intelligence. In November, Bitdeer announced it will be a preferred cloud service provider for Nvidia ‘s partner network. “BTDR plans to expand into AI/HPC in the near future with the launch of its Bitdeer AI Cloud offering that will allow businesses to access high-powered computing resources in the cloud for tasks involving AI or machine learning,” Palmer wrote in his report. “We believe the company is well positioned to take market share in the AI/HPC space, in which it will initially focus on servicing small AI companies, thanks in part to its status as a preferred cloud service provider in Nvidia’s partner network,” Palmer said. What’s more, Bitdeer has differentiated itself from its peers with a scalable business, as well as a diversified revenue stream, according to Palmer. All this should lift a stock that has severely underperformed this year. Bitdeer is down 36% so far in 2024. But Benchmark’s $13 price target implies the stock could nearly double from Wednesday’s closing price of $6.74 per share. “BTDR shares are attractive, in our view, given the wide gap between their discount valuation and the company’s growth prospects,” Palmer wrote Thursday, adding, “we expect their price to appreciate meaningfully as management executes on their growth plans.” Benchmark is not the only Wall Street firm to recently initiate coverage of the crypto miner. On Wednesday, BTIG’s Gregory Lewis initiated coverage of the stock with a buy rating, and an even higher $15 price target, which would equal 122% upside. — CNBC’s Michael Bloom contributed to this report.
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