Benchmark maintained a $27 price target for Bitdeer (BTDR) shares, calling the company "comparatively inexpensive" relative to its growth trajectory. The investment bank reiterated its positive stance as Bitdeer's artificial intelligence cloud annual recurring revenue (ARR) reached $43 million by end-March, marking a 105% month-over-month surge.
The rapid AI cloud expansion underscores Bitdeer's pivot beyond traditional bitcoin mining into higher-margin software and services. The company's self-mining hashrate continues climbing, supporting both its core mining operations and infrastructure for its expanding AI business. This diversification addresses crypto mining's commodity-like nature while positioning Bitdeer to capture demand from enterprises seeking GPU and compute capacity.
Bitdeer's valuation at $27 per share reflects Benchmark's confidence in sustaining this growth rate. The AI cloud business, growing at triple-digit percentages monthly, carries considerably higher margins than mining alone. At end-March ARR of $43 million, annualized run-rate suggests the AI segment alone could exceed $500 million in annual revenue if momentum holds, though month-to-month volatility typically moderates such projections.
The thesis hinges on Bitdeer's ability to scale its AI infrastructure while maintaining hashrate growth. Bitcoin mining remains cyclical and dependent on BTC price action, currently trading above $65,000. The AI cloud business, by contrast, offers recurring revenue tied to enterprise compute demand rather than crypto volatility.
Benchmark's reiterative call signals confidence post-IPO. Bitdeer trades as a pure-play mining and AI infrastructure bet, differentiating itself from competitors focused solely on hashrate accumulation. Institutional investors tracking AI infrastructure plays now track BTDR alongside traditional cloud providers.
THE BOTTOM LINE: Bitdeer's AI cloud business scaling at 105% monthly validates management's diversification strategy, supporting Benchmark's bullish stance as the company balances mining operations with higher-margin software revenue streams.