Bitdeer Technologies Group (NASDAQ:BTDR) crashed more than 20% Monday, yet Benchmark calls the selloff an overreaction and reiterated its Buy rating with a $22 price target implying 153% upside.
Why the Stock Crashed and Why Benchmark Disagrees?
Benchmark analyst Mark Palmer said in a note cited by The Block that the selloff came after Bitdeer disclosed a new $1 billion shelf registration, spooking investors worried about dilution.
Palmer pushed back directly, noting that Bitdeer confirmed during its earnings call it intends to use non-dilutive, project-level financing wherever contracted cash flows support it.
He called the decline “an overreaction” and argued the market missed the bigger picture.
Bitdeer posted $228.8 million in Q2 revenue, up 47% year-over-year, while adjusted EBITDA surged 575% year-over-year to $31.1 million, driven by Bitcoin (CRYPTO: BTC) mining efficiency gains.
What Needham Said About Bitdeer’s Pipeline
Needham cut its price target to $20 from $22 while keeping its Buy rating, according to Investing.com.
The firm said the pipeline is not as strong as it previously expected, with 47 megawatts still sitting empty at Tydal, Rockdale on hold, and Clarington staying as a mining site rather than converting to AI use.
Moreover, Needham modestly raised its 2027 adjusted EBITDA estimate on improved mining margins but also lifted its share count estimate and lowered its target multiple.
Why Bitcoin Mining Still Matters for Bitdeer’s AI Strategy
Palmer argued that Bitcoin mining is doing more than keeping the lights on at Bitdeer.
It is generating all of the company’s revenue, covering operating costs, and it directly funded the infrastructure behind Bitdeer’s largest AI deal to date.
That deal is a $4.7 billion, 16-year agreement with Volta Tydal AS, with a leading AI lab as the end customer.
The site was originally built for Bitcoin mining, meaning the power grid connections, land, and equipment were already in place when Bitdeer decided to convert it.
That head start let Bitdeer move quickly enough to win the contract on Volta’s compressed timeline.
“Mining produced the cash, the hardware and the energized land that helped to make a $4.7bn contract executable,” Palmer wrote.
BTDR Price Prediction: Technical Analysis
BTDR holds flat at $8.70 Tuesday, down nearly 57% from its June peak of $20.
All four EMAs stack between $11.11 and $13.00 as a wall of overhead resistance with no base formation visible.
RSI at 34.78 approaches oversold territory but the bearish divergence from April has fully executed.
The $8 level is the last meaningful support before price discovery lower.
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