TLDR
- Bitdeer’s 570-megawatt campus in Ohio will support AI and high-performance computing.
- Benchmark sets a $38 price target for Bitdeer, based on projected 2026 revenue.
- Bitdeer’s vertical integration gives it a competitive edge over peers in AI.
- Bitdeer’s in-house AI development aims to reduce costs and improve revenue timeline
Benchmark analysts have expressed strong optimism about Bitdeer Technologies Group’s in-house approach to AI-data-center development. The company’s decision to handle infrastructure development internally is expected to improve its profitability and accelerate the timeline from building infrastructure to generating revenue. This shift could position Bitdeer as a competitive player in the AI compute sector, as more miners move toward AI and high-performance computing.
Bitdeer’s Strategic Move Toward AI
Bitdeer Technologies is making significant strides in its AI and high-performance compute facility expansion. The company is developing a 570-megawatt campus in Clarington, Ohio, with power availability expected ahead of schedule, by late 2026. In addition to its Ohio project, Bitdeer is considering converting its Norway site to support AI workloads, with a plan to deliver around 200 megawatts of dedicated AI capacity by the end of 2026.
By managing the development of these AI data centers in-house, Bitdeer expects to enhance its operational efficiency and reduce costs. The company’s vertically integrated business model, which includes construction, mining operations, and rig manufacturing, positions it to benefit more from the AI sector’s growing demand for computing power. This approach offers an advantage over competitors who focus only on bitcoin mining.
Benchmark’s Positive Outlook
In a recent report, Benchmark analysts reinforced their bullish stance on Bitdeer, noting that the company’s internal development of AI data centers is a “strategically sound” move. According to Benchmark analyst Mark Palmer, this in-house strategy will shorten the timeline from infrastructure development to revenue generation. It is expected to improve the economics of Bitdeer’s AI and high-performance computing operations, making them more profitable.
Palmer emphasized that this decision places Bitdeer in a strong position to capture the increasing demand for AI compute capacity. He also noted that the company’s vertically integrated model provides a clear competitive edge over its peers, many of whom are solely focused on bitcoin mining. As a result, Bitdeer’s strategic pivot could lead to more robust financial outcomes in the coming years.
Industry Shift and Competitive Advantage
The expansion into AI and data-center services is part of a broader trend among cryptocurrency miners. Companies like CleanSpark, Bitfarms, and Iris Energy are also diversifying their operations to include AI capabilities. With traditional bitcoin-only strategies becoming less profitable, these companies are looking for new ways to capitalize on the growing demand for AI-related compute resources.
Bitdeer’s move aligns with this broader industry shift, as demand for AI infrastructure continues to rise. As AI technologies require substantial computational resources, the company’s ability to provide dedicated AI capacity will likely position it to meet this growing need. The move also provides Bitdeer with a buffer against the volatility often seen in the cryptocurrency mining sector, making it less reliant on the fluctuating price of bitcoin.
Market Reaction and Future Projections
Following Benchmark’s report, Bitdeer’s stock saw a significant uptick. The company’s shares rose over 9%, reaching $26.20, just below its all-time high of $27.30. Benchmark set a price target of $38 for Bitdeer, using a 6x multiple of the company’s projected 2026 revenue. The analysts believe that Bitdeer’s improved unit economics and faster AI buildout timelines will be key factors in driving its growth.
The company’s entry into the AI space, alongside its bitcoin mining operations, is expected to strengthen its market position. As more players enter the AI compute market, Bitdeer’s early investments in infrastructure could provide a long-term competitive advantage.
Bitdeer’s decision to bring its AI data-center development in-house could lead to better margins and faster revenue generation. This shift is a key factor behind Benchmark’s positive outlook on the company’s future. As the demand for AI compute resources grows, Bitdeer’s vertical integration and focus on AI could set it apart from competitors.
