Contributed by

Nicholas Cortellucci, CFA | Equity Research Analyst

Luca Perna | Equity Research Associate

What you need to know:

• Bimergen has a portfolio of 23 battery energy storage projects across the US, totaling 2.0 GW, many of which will become operational in the next 2- 3 years.

• The projects have strong economics driven by 60% investment tax credits, recurring energy arbitrage revenue, and development fees.

• The Company has $8.9M in net cash compared to its market cap of $26.0M, translating to the stock trading at just 0.9x/0.3x 2027E/2028E EBITDA modelling only a fraction of its pipeline going into operations.

Bimergen Energy Corporation (NYSE American: BESS) is an owner, developer, and operator of utility-scale battery energy storage systems across the U.S. The Company has 23 projects in development, totaling 2.0 GW, of which 280 MW is expected to be in operation by 2028, generating $52.2M in EBITDA compared to BESS’s enterprise value of $17.1M. We are initiating coverage on BESS with a BUY rating and a $9.50/share target price.

Investment Thesis Summary

War Chest of Cash and Ample Financing Capacity. Following its recent financing at $4.00/share, BESS has a net cash balance of $8.9M ($1.20/share) compared to its market cap of $26.0M. As such, the market is ascribing little value to BESS’ portfolio of projects. BESS has $250M in commitments for the mezzanine/equity portions of its projects and will cover the remainder with debt.

Active Pipeline of Projects. Bimergen purchased its portfolio of battery storage assets in 2024, strategically located across the U.S. to take advantage of the most prosperous energy arbitrage markets. Collectively, the portfolio represents 2.0 GW, and management has a goal of reaching 4.0 GW over the long-term. BESS has 200 MW of near-term projects, which will become operational in 18 months.

Strong Economics Given Capital Light Nature. Bimergen is a project manager, meaning that its economics are capital-light and funded by its partners. In approximation, each 100 MW project will cost $125M in capex, up to 60% of which will be wiped away from investment tax credits, and will generate $20M in annual revenue and $11M in annual EBITDA once operational. BESS will also be receiving development fees from its assets, which we expect $15M for in 2026.

Leading Strategic Partnerships. BESS has assembled a high-quality ecosystem of partners to support its growth, including systems integration, manufacturing and supply chain, technology and chemistry, and capital/co-development.

Ideal Cycle Timing. Bimergen’s portfolio of assets sits at an inflection point for the grid, with data center interconnection requests surging 259% YoY. With operational assets already in queue, Bimergen bypasses the typical multi-year permitting delay, positioning itself to develop its portfolio in the near to medium term.

Management Ownership. Management collectively owns 42% of BESS, led by Co- CEO and President Cole Johnson (~24%) and Executive Chairman Benjamin Tran (~15%), providing strong alignment with shareholders.

Valuation. Energy storage firms trade at 29.8x/13.3x 2027E/2028E EBITDA on average compared to BESS at just 0.9x/0.3x, given its large net cash position. We are forecasting that only a fraction of its pipeline goes into operations, reflecting a largely discounted valuation using conservative assumptions.

Catalysts

• Offtake Agreements – Ongoing

• Project Advancement Updates – Ongoing

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