What happened?
Bitdeer Technologies, a Bitcoin mining company, is shifting its focus from selling mining equipment to increasing its self-mining operations. This strategic change is due to the declining profitability in selling mining rigs amidst a cooling crypto market. Additionally, Bitdeer is planning to launch U.S.-based manufacturing to reduce dependency on foreign supply chains affected by tariffs.
Who does this affect?
This development affects several groups including Bitdeer’s clients, who may face delays in receiving pre-ordered mining rigs as the company redirects some of its stock to its own facilities. It also impacts the broader Bitcoin mining industry, especially those relying heavily on importing equipment from overseas manufacturers. U.S. workers and local economies could benefit from Bitdeer’s plans to bring jobs and manufacturing back to America.
Why does this matter?
Bitdeer’s decision to expand self-mining and establish U.S. manufacturing reflects broader industry challenges such as tariff-related supply chain disruptions and fluctuating Bitcoin mining profitability. This move could influence market dynamics by reducing the availability of mining rigs for external buyers, potentially leading to increased competition. As Bitdeer triples its Bitcoin mining capacity, it could impact hashpower distribution and potentially alter Bitcoin’s network landscape.