Bitdeer's AI business growth has prompted StoneX to raise its third-quarter revenue and earnings forecasts.
The company's expected future revenue from its AI cloud commitments have risen to $2.9 billion from around $900 million in a month, StoneX analyst Mark Palmer said in a note to clients on Thursday.
Much of that came from commitments "covering more than 70%" of Bitdeer's A201 site in Johor Bahru, Malaysia, with the agreements expected to bring in more than $1.7 billion over five years.
Combined with a separate $4.7 billion, 16-year data center lease in Norway, StoneX estimates Bitdeer's contracted future revenue at about $7.6 billion.
"Until now, the market has valued the company as a bitcoin miner with an AI side project," Palmer wrote.
StoneX maintained a Buy rating and a $22 price target. That's a near 3x jump from Bitdeer's $7.40 share price on Thursday, with the stock trading near a two-year low.
Bitcoin mining segment
The company's bitcoin mining business is also growing. Bitdeer mined 3,855 bitcoin in the third quarter, up 43% from Q2, according to the report.
StoneX raised its third-quarter revenue outlook to over $305 million from $258.6 million and its adjusted EBITDA estimate to $82.8 million from $45.5 million.
Bitdeer is generating more bitcoin while growing its AI cloud business, and higher bitcoin prices are also helping, Palmer said.