While Peers Struggle, Bitdeer Invests $36 Million to Build Factory in the U.S.

The current Bitcoin mining industry is struggling financially.

The "hash price," which measures miners' profitability, dropped to a historic low of $27.89 on February 24 this year and has recently hovered around $30.

The entire industry is tightening its belts to survive, with even Riot's CEO publicly reducing stock holdings.

However, on July 10, Bitdeer made an unexpected move by investing $36 million to establish a mining machine manufacturing plant in Sparks, Nevada.

1. Building Machines to Avoid Supply Chain Issues

With the $36 million investment, Bitdeer secured a 187,000 square foot facility in Sparks, expected to be completed by the end of 2026.

This budget covers the factory, equipment, and construction costs.

Once operational, the facility will produce 10,000 of Bitdeer's self-developed SEALMINER mining machines each month.

Previously, their chips were manufactured by TSMC in Taiwan, with their innovation center located in San Jose, California.

Now, they are moving manufacturing to the U.S. for a reason.

Paul Hanson, Chairman of Bitdeer Industries, stated that the goal is "supply chain resilience."

This means they no longer want to be dependent on TSMC's production capacity or be caught off guard by sudden U.S. tariff policies.

If they are going to manufacture themselves, they need to deliver.

Their A4 Ultra Hydro mining machine has achieved an energy consumption of 9.45 J/TH with a hash rate of 886 TH/s.

In comparison, Bitmain's flagship model consumes about 9.5 J/TH with a hash rate of 580 TH/s.

Bitdeer not only matches the industry leader but also excels in hash rate density.

However, the mining industry is currently losing money. Where did Bitdeer get the funds for this factory?

2. Despite Mining Losses, There Are Other Resources

Looking at their Q1 financial report, Bitdeer's mining operations are indeed struggling.

They reported a gross loss of $34.4 million from self-operated mining, with an operating cash flow of -$346.9 million, burning through cash on the mining machine supply chain.

Despite losses in their main business, they are building a factory, backed by two rounds of "blood transfusions" outside the financial report.

The first infusion came from Wall Street.

In Q1, they secured $375 million in convertible bond financing (5% coupon, maturing in 2032), stabilizing their financial foundation.

The second infusion comes from the current capital favorite: AI.

By the end of April, their AI data surged to about $69 million, up from $43 million a month prior, a 60% monthly increase.

By the end of June, they signed a hosting agreement at a data center in Tydal, Norway.

While the mining business is enduring a downturn, Bitdeer has enough ammunition to spend counter-cyclically, thanks to long-term financing and expected revenue from AI.

3. Building a Factory in the Desert is Like Buying a "Protective Amulet"

Establishing a factory in the U.S. not only provides 70 jobs in Nevada but also reflects a more strategic calculation.

First, it’s about risk avoidance.

Mining machines have always been within the range of increased tariffs; building the factory domestically eliminates this risk.

Second, it’s about internal consumption.

The current low hash prices are forcing miners across the industry to phase out old, energy-intensive machines.

If capable miners want to survive, they must upgrade to new machines.

Bitdeer can manufacture, use, and sell to domestic customers.

When others cannot buy or afford new machines due to tariffs and production capacity issues, Bitdeer can complete capacity replacement within its closed loop.

This $36 million is merely Bitdeer's ticket to secure domestic production capacity during the industry's low point.

While others panic, they stockpile, waiting for the next cycle to arrive, potentially reshuffling the chips on the table.

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