The countdown to Bitcoin’s next halving event, scheduled to take place in just a month, is underway. As estimated by The Block’s halving countdown, the event is set for April 20, where miners’ block rewards will be slashed from 6.25 BTC to 3.125 BTC.

Approximately 4,450 blocks remain until the anticipated date, based on Bitcoin’s average block generation time of 10 minutes. If the current pace holds, April 20 around 8 a.m. EDT marks the potential moment for the halving event, reducing miners’ rewards per block by half.

Bitcoin halvings occur automatically every 210,000 blocks, approximately every four years, in a programmed event. Following each halving, miners receive 50% fewer bitcoins as a reward for their mining efforts, although they still earn transaction fees per block as usual.

With three previous halving events in Bitcoin’s history, the block reward inflation has decreased from 50 BTC to 25 BTC in 2012, then to 12.5 BTC in 2016, and most recently to 6.25 BTC on May 11, 2020. Ultimately, there will only be 21 million bitcoins in existence, with the halving events set to continue until the last bitcoin is projected to be mined around 2140, after which miners will solely earn from transaction fees.

The Market Impact of Bitcoin Halvings

Bitcoin halvings historically correlate with significant price fluctuations in the cryptocurrency market. Although not directly causal, these events often precede notable bull runs in Bitcoin’s price trajectory.

Jean-David Péquignot, Head of Markets at OSL, remarked on the positive impact of Bitcoin halvings on its price, attributing it to heightened optimism among crypto investors due to the event’s reinforcement of Bitcoin’s scarcity.

Furthermore, a recent report from ETC Group suggests that the forthcoming halving may not be fully priced into the current market. Their analysis indicates a potential increase in Bitcoin’s equilibrium price, projecting figures as high as $215,000 by the end of the next Bitcoin epoch in 2028.

Despite recent fluctuations, with Bitcoin sliding from $68,136 to $61,506 and eventually rebounding to $63,994, analysts at Bernstein view the dip as a buying opportunity ahead of the impending halving event.

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The meteoric rise of Bitcoin (BTCUSD) alongside the continued dominance of artificial intelligence (AI) stocks has been a notable narrative on Wall Street throughout 2024. Despite recent volatility, BTC has recently reached new highs surpassing $70,000, driven by the introduction of spot Bitcoin ETFs and optimism surrounding the upcoming “halving” event.

While the introduction of Bitcoin-based ETFs initially diverted attention from crypto mining stocks, analysts at Bernstein contend that miners remain the most viable equity proxy for BTC. They argue that the recent underperformance of these stocks, particularly pre-halving, presents an uncommon opportunity to acquire them at a discount. Here’s a closer examination of one such lesser-known Bitcoin mining company poised for substantial growth according to Wall Street analysts.

Overview of Bitdeer Technologies Stock

Bitdeer Technologies Group (NASDAQ:BTDR) specializes in Bitcoin mining, with a focus on blockchain and high-performance computing. Headquartered in Singapore, the company also provides advanced cloud services catering to clients with significant demand for AI. Bitdeer operates data centers in the U.S., Norway, and Bhutan, with a current market capitalization of $823 million.

Despite a year-to-date decline of 25.9%, BTDR stock has notably underperformed the broader equities market.

Strong Q4 Performance

Bitdeer recently announced its preliminary results for the fourth quarter of the previous fiscal year, reporting revenues of $114.8 million, marking a 49% year-over-year increase. Notably, self-mining revenues surged by over fourfold to $46.9 million in the quarter. The company achieved an EPS of $0.11, a significant improvement from the $0.07 loss per share in the corresponding period of the prior year.

Additionally, Bitdeer ended the quarter with a cash balance of $144.7 million, up 7.6% sequentially, and mined approximately 1,299 Bitcoins, a 19.7% increase from the previous quarter. Full results are anticipated to be released on March 22.

Strategic Initiatives

Bitdeer has undertaken several strategic initiatives to bolster its position in the market. The appointment of founder Jihan Wu as CEO received a positive market response, as did the recent opening of a data center in Bhutan, aimed at reducing operating costs through lower electricity expenses.

Looking forward, the construction of the Tydal data center in Norway, equipped with immersion cooling technology, is expected to enhance efficiency and cost-effectiveness. Furthermore, Bitdeer’s partnership with Nvidia to address the growing demand for AI supercomputing underscores its commitment to diversification and innovation.

Analyst Outlook

Analysts are bullish on Bitdeer stock, with Benchmark initiating coverage with a “Buy” rating and a $13 price target, suggesting an upside potential of approximately 103%. H.C. Wainwright analyst Mike Colonnese echoed this sentiment, highlighting the stock’s undervaluation based on forward enterprise value/revenue multiple, with a $20 price target representing a potential upside of 171.7%.

Overall, unanimous consensus among five analysts rates BTDR as a “Strong Buy,” with a mean target price of $14.50, indicating a potential upside of around 97% from current levels.

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Bitcoin’s recent plunge has had a ripple effect, dragging down major crypto-related stocks, including Tesla and Coinbase. The cryptocurrency saw a sharp 7% decline in its price, tumbling from $73,000 to around $63,000 in just under a week. This downward trend was exacerbated by a record daily outflow of $642.5 million from Grayscale’s spot Bitcoin ETF, GBTC, on Monday.

MicroStrategy, a software company known for its Bitcoin maximalist stance, also took a hit, experiencing a nearly 7.5% loss and trading at $1,384 at the time of writing. The company recently completed another convertible note offering to boost its Bitcoin holdings, selling $604 million in notes to purchase 9,000 bitcoin. This move is part of MicroStrategy’s aggressive Bitcoin buying strategy, with the company now owning 214,246 bitcoin, which represents 1% of the total Bitcoin supply.

Tesla, another prominent player in the crypto space, saw its stock price plummet by 60% from its all-time high, currently trading at $171 with a 1.2% decrease in a day. The stock’s volatility was fueled by an interview in which Tesla CEO Elon Musk was questioned about his alleged drug use, following a story published by The Wall Street Journal. Despite the decline, Tesla holds over 10,500 bitcoin, valued at $336 million.

Coinbase, the largest publicly traded crypto exchange, also faced a 3% decline, trading at $230 at the time of writing. The drop in its price is directly linked to Bitcoin’s sharp decline.

Other stocks in the crypto space experienced similar declines. Square, led by Jack Dorsey, saw a nearly 2% drop, hovering around $80. Robinhood, a crypto-friendly company, witnessed a 5% decline in its shares, which fell to $17. Riot Platforms, a crypto mining company, suffered a more than 2% loss, dropping to $11.

Despite the recent downturn, experts remain optimistic about Bitcoin’s future, believing that it will soon recover and reach new heights.

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