Bitdeer Enhances Mining Operations Amid Tariff Challenges and Market Uncertainty

Bitdeer Technologies Group is enhancing self-mining operations and initiating US manufacturing amidst a challenging cryptocurrency market and tariff uncertainties. The firm aims to utilise its own rigs instead of selling them while addressing supply chain disruptions. With expansion plans, Bitdeer is positioned to grow capacity significantly and enter new markets, focusing on AI and high-performance computing.

Bitdeer Technologies Group, a Nasdaq-listed Bitcoin mining firm, is intensifying its self-mining efforts while advancing its plans for manufacturing mining equipment in the US. This strategic move addresses the cooling cryptocurrency market and the current uncertainties surrounding US trade policies.

Due to waning demand for Bitcoin mining rigs, Bitdeer is shifting focus to utilise its own equipment for self-mining rather than selling to external miners, as stated by Jeff LaBerge, head of capital markets. This adjustment reflects the challenging landscape, where Bitcoin’s profitability, measured by hashprice, has significantly dropped following the recent halving and amid disrupted supply chains due to tariffs.

Founded in 2020 by Jihan Wu, Bitdeer ranks among the leading Bitcoin miners globally and operates one of the largest mining facilities in Texas. Mining entails using specialized computers to solve complex mathematical puzzles for earning Bitcoin rewards. In light of tariff pauses, Bitdeer aims to expedite equipment shipping from Southeast Asia to the US, although some customers have delayed orders, prompting a redirection of machines to sites in Bhutan and Norway.

Additionally, Bitdeer has plans to commence production in the US later this year as part of its strategy to localize manufacturing and mitigate supply chain risks. Bitmain Technologies Ltd., a key competitor, has also announced a US production line. LaBerge emphasized the long-term vision to create jobs and manufacturing capabilities in America.

While the chips used in mining rigs, sourced from Taiwan’s TSMC, are currently exempt from tariffs, there is apprehension regarding possible future costs. Bitdeer is closely monitoring tariff implications while planning for potential increases in expenses.

Currently, Bitdeer operates with approximately 900 megawatts of capacity and aims to grow to 2.6 gigawatts by 2026. The company is also exploring new markets in Canada and Ethiopia and diversifying into artificial intelligence and high-performance computing, leveraging its data centres in Texas and Ohio, which are suitable for supporting AI workloads.