Bitdeer Expands US Mining Rig Manufacturing, Aligns with Trump Policies & Drives Vertical Integration

Facing pressure from narrowing profit margins, Nasdaq-listed Bitdeer is strategically expanding its cryptocurrency mining rig manufacturing capabilities within the United States. This pivotal move aims to capitalize on perceived domestic policy advantages under President Donald Trump’s administration while concurrently evolving the company’s operational model from primarily a miner to a vertically integrated technology provider in the digital asset sector.

• Bitdeer is significantly expanding its U.S. manufacturing of cryptocurrency mining rigs.
• This strategic shift anticipates favorable domestic policies and trade dynamics under the Trump administration.
• The company is evolving its business model towards vertical integration, becoming a technology provider in digital assets.
• Tether invested over $400 million, securing a 21.4% stake in Bitdeer.
• Financial performance indicates successful vertical integration, though ongoing R&D and SG&A expenses require careful management.
• Bitdeer is targeting aggressive hashrate growth and significant technological advancements with its SEALMINER A4 project.

Strategic Expansion and Policy Alignment

Bitdeer, a Singapore-based entity, has outlined plans to significantly scale its U.S. manufacturing of mining rigs. Jeff LaBerge, the company’s CFA, indicated that this expansion seeks to navigate global trade dynamics, including tariffs, by localizing production. He further noted that President Trump’s policies are viewed as supportive of energy sector growth and conducive to a Bitcoin-friendly environment, which Bitdeer anticipates will lead to favorable tariff resolutions. This domestic pivot is also observed among many competitors considering similar shifts in their production. While increasing its Bitcoin holdings, Bitdeer has clarified it does not intend to reposition itself as a treasury firm, emphasizing a practical rather than idealistic approach to holding digital assets on its balance sheet.

The company acknowledges the inherent challenges facing Bitcoin mining, including escalating operational costs, diminishing block rewards, and broader macroeconomic uncertainties. In a notable development reinforcing investor confidence, Tether invested over $400 million, acquiring a 21.4% stake (31.8 million shares) in Bitdeer, positioning itself as a significant shareholder.

Financial Performance and Operational Evolution

Bitdeer’s Q2 results suggest that its vertical integration strategy is yielding positive outcomes. Financial analysts note the company’s successful transformation from solely a Bitcoin miner into a key industry technology provider. The manufacturing and commercialization of their SEALMINER A2 miners have provided a distinct cost advantage and a new engine for growth. However, analysts also point to areas requiring careful management, including a substantial quarterly cash burn from research and development (R&D) and selling, general, and administrative (SG&A) expenses, reported at $42.3 million in Q2. The company’s growing debt load, which has reached $533 million, and its continued sensitivity to Bitcoin price volatility, alongside high innovation costs, are identified as potential risks that necessitate sustained revenue growth for long-term profitability.

Growth Trajectory and Technological Advancement

Matt Kong, Bitdeer’s Chief Business Officer, articulated the company’s aggressive growth aspirations, particularly concerning its self-mining hashrate. He characterized Q2 as a significant inflection point, affirming the company’s trajectory towards improved financial results in the latter half of 2025. Bitdeer targets achieving a 40 Exahash per second (EH/s) hashrate by the end of October and expects to surpass its 2025 objectives due to improved wafer supply allocation for its foundry.

Beyond hashrate expansion, Bitdeer is investing significantly in technological innovation. The company’s R&D efforts are focused on its SEALMINER A4 project, aiming for a chip efficiency of 5 Joules per Terahash (J/TH). Recent progress includes expanding its U.S. engineering team and developing customized silicon software, which Kong believes solidifies Bitdeer’s position as a leading supplier of energy-efficient mining rigs. This focus on technological superiority is intended to enhance the company’s competitiveness and deliver value to its customers and shareholders.

In terms of infrastructure, Bitdeer continues to energize more data centers. It has expanded its self-mining data center capacity to 361 Megawatts (MW), contributing to a total electrical capacity of approximately 1.3 Gigawatts (GW). The company projects this capacity to increase to over 1.6 GW by the close of the current year, with its Clarington, Ohio, site nearing its full 570 MW capacity. These investments underscore Bitdeer’s commitment to scaling its operations and technological footprint within the evolving digital asset landscape.