Bitdeer Technologies Group (BTDR) Gains On AI Cloud Backing, Is It Fully Priced?

Bitdeer Technologies Group (BTDR) has drawn fresh investor attention after Citizens initiated positive coverage related to its AI cloud push, shortly after Bitdeer AI received an industry award for its AI cloud platform.

See our latest analysis for Bitdeer Technologies Group.

The latest AI cloud headlines come on top of a strong run in Bitdeer Technologies Group’s share price, with a 30 day share price return of 10.36% and a 90 day share price return of 104.90%. The 1 year total shareholder return of 54.64% and 3 year total shareholder return of 53.12% point to momentum that has been building rather than fading as the stock responds to news around AI capacity, contracts and recent operating updates.

If Bitdeer’s AI cloud pivot has caught your interest, it can be useful to see what else is moving in the space, starting with 34 AI small caps.

With Bitdeer Technologies Group now in the AI cloud spotlight and the stock already delivering strong recent returns, the key question is whether investors are still getting in at a discount or if markets are already pricing in future growth.

Preferred Price-to-Sales of 5.6x: Is it justified?

Bitdeer Technologies Group now trades on a P/S of 5.6x, and with the last close at $17.15 the stock sits at a premium to several valuation markers.

The P/S ratio compares the company’s market value to its revenue, which can be useful for businesses like Bitdeer Technologies Group that are still reporting losses. With revenue of $739.06 million and the stock not yet profitable, investors are effectively focusing on sales scale and potential future monetisation rather than current earnings.

One data point suggests the current P/S could be supported. Forecasts point to revenue growth of about 32.7% per year, which is described as faster than both the broader US market and a 20% per year threshold. Against that, Bitdeer Technologies Group is currently unprofitable, has a reported loss of $199.25 million, is forecast to remain unprofitable over the next 3 years and has less than 1 year of cash runway. This raises questions about how much growth is already reflected in the 5.6x revenue multiple.

Compared to peers, the picture is mixed. Bitdeer Technologies Group is described as good value relative to its peer group, where the average P/S is 7.3x, but expensive compared to the broader US Software industry average of 3.1x. It is also described as expensive versus an estimated fair P/S ratio of 4.1x. This is a level the market could potentially move toward if sentiment normalises around revenue quality and funding risks.

Explore the SWS fair ratio for Bitdeer Technologies Group

Result: Price-to-Sales of 5.6x (OVERVALUED)

However, the Bitdeer Technologies Group story still hinges on an unprofitable business with a reported loss of $199.25 million and less than 1 year of cash runway.

Find out about the key risks to this Bitdeer Technologies Group narrative.

Next Steps

With Bitdeer Technologies Group presenting both enthusiasm around AI cloud growth and clear funding and profitability questions, it makes sense to check the underlying data yourself and move quickly to form your own view using the 1 key reward and 4 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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