Benchmark has maintained its Buy rating and $22 price target on Bitdeer Technologies Group (NASDAQ: BTDR) following the company's stronger second-quarter results, implying approximately 100% upside from recent trading levels near $11.

The investment firm reduced its previous target of $27 to $22 on August 6, while keeping its bullish stance on the stock. Benchmark analyst Mark Palmer also outlined a higher valuation scenario reaching $38, contingent on the expansion of Bitdeer's AI and high-performance computing business.

Q2 Revenue Rises 47% Year Over Year

Bitdeer reported $228.8 million in revenue for the second quarter of 2026, a 47% increase from $155.6 million in the same period a year earlier. Revenue also climbed from $188.9 million in the first quarter, driven primarily by the company's growing self-mining operations.

Despite the revenue gains, Bitdeer posted a net loss of $92.3 million for the quarter. Adjusted EBITDA rose to $31.1 million.

Bitcoin Production Nearly Quintuples

Bitcoin self-mining remained Bitdeer's largest revenue source, generating $168.4 million during the second quarter. The company mined 2,694 Bitcoin in the period, a sharp increase from 565 Bitcoin produced in the second quarter of 2025.

Bitdeer recorded an average deployed self-mining hash rate of 69.5 EH/s during the quarter, reflecting continued expansion of mining capacity and deployment of additional computing power.

As of February 20, 2026, Bitdeer reported zero Bitcoin holdings after selling its treasury reserves as part of its capital allocation strategy. The decision contrasts with peers such as Marathon Digital and Riot Platforms, which retain substantial Bitcoin on their balance sheets as treasury assets.

AI Cloud Revenue Climbs 284%

Bitdeer's AI cloud business generated $14 million in second-quarter revenue, up 284% from $3.7 million in the first quarter. The company has been diversifying beyond Bitcoin mining by developing infrastructure to support artificial intelligence and high-performance computing workloads. The strategy mirrors a broader industry shift, as publicly traded miners including Core Scientific, Hut 8, and Iris Energy have also moved to repurpose power and data-center infrastructure for AI workloads amid sustained enterprise GPU demand.

In August 2026, Bitdeer signed a 16-year lease tied to its Tydal campus in Norway. The agreement is valued at $4.7 billion and could reach $8 billion under its full terms. The company plans to convert the site into an AI and high-performance computing facility with 121 megawatts of IT capacity powered by Nvidia GPUs.

Norway's renewable electricity access and cooler climate offer advantages for reducing data-center cooling costs. Bitdeer also operates facilities in the United States and Southeast Asia. The company originated as a subsidiary of Bitmain, the world's largest Bitcoin mining hardware manufacturer, before its separation and public listing on Nasdaq.

Analyst Outlook

Benchmark's revised $22 target still represents roughly double BTDR's recent share price in the $10 to $11 range. Palmer's upper-end valuation of $38 depends on successful execution of Bitdeer's AI infrastructure expansion alongside continued Bitcoin mining activity.

Key milestones for the Tydal facility include completing required infrastructure, securing customers for available computing capacity, and managing GPU access as the project advances.

Bitcoin mining operations remain exposed to cryptocurrency price volatility and network conditions. The April 2024 Bitcoin halving reduced block rewards, intensifying pressure on miners to control operating costs and expand efficient computing capacity.

Bitdeer's increased production and growing AI business form the core rationale behind Benchmark's maintained Buy rating and $22 price target.