Barclays initiates Bitdeer stock with overweight on AI shift

Barclays has initiated coverage on Bitdeer Technologies Group (BTDR) with an overweight rating and a price target of $15.00, indicating a potential upside of around 56% from its current trading price of $9.63. The company is leveraging its existing and future land assets, amounting to approximately 3 gigawatts, for providing AI and high-performance compute infrastructure.

In August, Bitdeer signed a notable colocation deal in Tydal, Norway, for 121 megawatts at a price of $160 per kilowatt per month, with escalators at 3% annually for 16 years, valuing the contract at $4.7 billion. Barclays attributes the stock's recent 40% decline since the deal announcement in late June to the absence of a near-term catalyst and the $457 million equity issuance at-the-market in Q2 2026, partly used for capital expenditures related to the deal.

InvestingPro analysis suggests the stock is slightly undervalued, and it exhibits high price volatility, indicated by a beta of 2.51. The Tydal deal is anticipated to become revenue-generating in early Q1 2027, accounting for 121 megawatts out of the company's total AI and colocation capacity of approximately 1.9 gigawatts. In other news, Bitdeer reported a wider-than-expected loss for Q2 2026, with a loss per share of $0.37 against estimates of $0.32, but still witnessed a 47% year-over-year revenue increase to $228.8 million, driven by increased Bitcoin mining production and expansion in its AI Cloud business.

Benchmark maintains a Buy rating with a $22.00 target, while Needham has reduced its target price from $22 to $20, citing a less favorable pipeline outlook. Needham notes that 47 megawatts remain available at Tydal, with Rockdale on hold and Clarington reserved for mining operations. These developments underscore Bitdeer's ongoing growth in AI infrastructure and efforts to bolster its financial position.