Bitdeer Expands Self-Mining Operations Amid Tariff Concerns and Market Turbulence

Bitdeer is shifting to self-mining operations and is investing in US-based production in response to cooling demand for mining hardware and potential trade tariffs. These adjustments come as the company faces financial struggles due to the impact of Bitcoin halving events and a volatile cryptocurrency market.

Bitdeer, a Bitcoin mining company, is shifting its focus towards self-mining and enhancing its operations in the United States amidst challenges posed by potential trade wars affecting global supply chains. Due to decreased demand for mining hardware from other companies, Bitdeer has chosen to prioritise mining Bitcoin (BTC) directly. Jeff LaBerge, the head of capital markets and strategic initiatives at Bitdeer, stated that future strategies will centre around self-mining.

Plans are underway to expand US manufacturing of mining hardware by the end of the year, in alignment with US President Donald Trump’s initiatives to impose tariffs on foreign imports and bolster domestic production. LaBerge emphasised that these manufacturing plans have been in development for a considerable period, aiming to reinstate jobs and production in America.

The cryptocurrency sector, including companies like Bitdeer, is grappling with instability in 2025, exacerbated by the effects of the Bitcoin network’s halving event in April 2024. Notable decreases in Bitdeer’s stock, about 28%, followed the announcement of disappointing fourth-quarter earnings. Factors contributing to this decline include lower mining rewards post-halving, which cut the rewards from 6.25 BTC to 3.125 BTC per block.

The reduction in mining rewards has led to a significant downturn in mining revenues and gross profits, dropping by 46% and 57% respectively. Additionally, Bitcoin’s hash price, a key indicator of miner profitability, has reached near-historic lows. Bitdeer attempted to mitigate falling revenues by marketing energy-efficient mining rigs, though growth in sales was insufficient to balance losses in other areas during the last quarter.

The turbulent market environment also coincides with American Bitcoin, a cryptocurrency mining operation linked to Trump’s family, exploring the idea of an initial public offering.