Needham lifts Bitdeer’s target citing a 16-year colocation pact with $4.7 billion in contracted revenue and 94% upside potential.
Needham increased Bitdeer Technologies’ (NASDAQ: BTDR) price target to $22 from $19 after the company secured a 121 IT MW lease at its Tydal campus in Norway. The new target reflects a 94% upside from Bitdeer’s Aug. 3 closing price of $11.37, with Needham maintaining a Buy rating and valuing the company at 14.5 times estimated 2027 EV/EBITDA.
The 16-year agreement with Volta carries $4.7 billion in contracted revenue, or about $202 per kW per month. A one-time eight-year renewal option could extend the total contract value to roughly $8 billion over 24 years. Needham noted the deal’s high revenue density, with average annual revenue of $2.43 million per IT MW, exceeding comparable transactions in its coverage.
Bitdeer expects a 90% NOI margin, equating to $2.16 million of annual NOI per IT MW. The company estimates $500 million in remaining capex, or $4 million per IT MW, significantly lower than the $9 million to $13 million range for greenfield U.S. developments. Needham highlighted a 54.6% yield on cost, attributing it to Tydal’s existing infrastructure.