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Bitdeer Technologies Group is shifting its focus to self-mining operations in response to global trade tensions and a decline in hardware sales. The company plans to manufacture mining rigs within the United States, aligning with President Trump’s initiative to bolster domestic production. Jeff LaBerge, Bitdeer’s Head of Capital Markets and Strategic Initiatives, emphasized that this move aims to “bring jobs and manufacturing back to America.”
The cryptocurrency mining sector has been significantly affected by the U.S. administration’s tariff policies. Tariffs on foreign imports have disrupted global supply chains, increasing costs for mining equipment. As a result, companies like Bitdeer are reassessing their strategies to maintain profitability.
Despite a 50% year-over-year increase in gross profits for Q2 2024, Bitdeer reported a net loss of $17.7 million due to capital expenditures on mining equipment and non-cash expenses related to Tether warrants. Previously, the company attempted to offset declining mining revenues by selling energy-efficient rigs, but sales growth did not compensate for weaknesses in other business areas.
As Bitdeer transitions to a self-mining model and invests in U.S.-based manufacturing, the company hopes to mitigate challenges posed by international trade policies and fluctuating market conditions. Success will depend on its ability to adapt to regulatory changes and maintain operational efficiency.
