- Bitdeer shifts from hardware sales to focus on self-mining.
- U.S. tariffs push Bitdeer to plan local manufacturing in 2025.
- Bitdeer expands into AI and mining operations globally.
A Nasdaq-listed Bitcoin mining company, Bitdeer Technologies Group, has changed its business model after management decided to focus on self-mining rather than selling mining equipment. The decision follows decreased profitability in Bitcoin mining coupled with low demand for the hardware used for the process.
Jeff LaBerge, currently serving as the director of capital markets and strategic initiatives at the head of Bitdeer, confirmed the company’s decision to expand its self-mining activities. The shift occurred mainly in line with changes in other mining and Digimining’s competitors after the Bitcoin halving in April 2024 saw block rewards decrease from 6.25 to 3.125 BTC. This has led to a decrease in hashprice one of the metrics used to measure the profitability of mining which is currently at an almost all-time low.
Impact of Tariff Policies on Supply Chain
Besides market forces, American trade policies affect operation strategies in the mining sector. President Donald Trump’s protectionist measures through tariffs have impacted the importation of technology goods such as mining rigs, which mainly come from China and Southeast Asia. Bitdeer is among several mining firms that have started reviewing operations and supply chain strategies triggered by these tariffs.
The targeted suspension of the new US tariffs started in April aims to shift the mining rigs from Southeast Asia to the US facilities. However, customers with preorder expectations have complained that they have been forced to postpone or cancel machine orders. These units have been shifted to their mining plants in Bhutan and Norway to ensure optimum utilization.
U.S. Manufacturing Plans and Expansion Goals
Further, Bitdeer is also planning to start the manufacturing unit in the United States during the second half of the calendar year 2025. This program has been set out with the goal of decreasing imports from other countries while at the same time encouraging employment within the country. The news came after another Bitcoin mining hardware firm based in China, Bitmain Technologies Ltd., co-founded by Bitdeer’s Jihan Wu, also revealed its intentions to set up a production line in the United States in the year before last.
While TSMC’s specialized chips used in the bitcoin mining rigs have not been affected by the tariffs implemented by the United States up to this time, Bitdeer is factoring in a rise in manufacturing expense. The company is still conservative as it waits for further decisions and potential shifts in the tariff treatment and trade policies.
Global Operations and Diversification into AI
Bitdeer currently manages slightly over nine hundred millet mining, and this capability is available worldwide. It intends to add 1 GW to the figure in the long-term vision for the company, reaching up to 2.6 MW by 2026. Though it is a global company, it has its mining infrastructure in strategic locations such as Texas and Ohio in the USA, Bhutan, and Norway.
Bitdeer.com is expanding its services in new areas, including Canada and Ethiopia, in addition to simple Bitcoin mining. The company is also locating some of the new-generation data centers in the USA for AI and HPC applications. These, especially the ones located in Texas and Ohio, are being adapted to fulfil the needs of such growing sectors.
