Bitdeer Breaks Ground on Nevada Factory Despite Bitcoin Hashprice Squeeze

Bitdeer (NASDAQ: BTDR) broke ground on a $36 million advanced electronics manufacturing facility in Sparks, Nevada, marking the company’s first domestic manufacturing and assembly footprint in the U.S., despite bitcoin mining economics remaining near record-low levels.

The 187,000-square-foot plant is expected to be completed by the end of 2026 and produce 10,000 SEALMINER units per month, the company said Thursday. The project is said to create about 70 local jobs across engineering, skilled technician and support roles.

The investment expands Bitdeer’s U.S. presence beyond its mining and data center operations, adding a domestic production base for its proprietary mining machines. The facility will complement Bitdeer’s existing U.S. data centers and its innovation hub in San Jose, California, the company said.

The timing underscores a counter-cyclical bet by Bitdeer, which is continuing to invest in bitcoin mining hardware capacity even as hashprice has fallen to levels that have pressured operators across the industry. Hashrate Index showed spot hashprice at about $29.81 per PH/s/day, while Luxor previously noted that hashprice hit a daily all-time low of $27.89 on Feb. 24 and that March marked a record-low monthly average of $31.27.

The squeeze reflects the combined impact of the April 2024 halving, rising network hashrate and weak transaction-fee revenue, leaving miners with less revenue for the same amount of computing power. At current levels, profitability is increasingly concentrated among operators with low-cost power and newer-generation machines.

Bitdeer has sought to address that pressure partly through vertical integration. The company has been developing its own SEALMINER machines and deploying them across its self-mining fleet. In April, Bitdeer said it had launched mass production of its SEALMINER A4 series, with efficiency of 9.45 joules per terahash.

Paul Hanson, chairman of Bitdeer Industrial, said the Sparks plant reflects the company’s strategy to strengthen supply-chain resilience and move closer to U.S. customers. Producing SEALMINER units in Nevada shows Bitdeer’s “long-term commitment to building capacity” for digital infrastructure operations in the U.S., he said in the announcement.

The Nevada project also comes as Bitdeer expands on multiple fronts. In its May operating update, the company reported 70.2 EH/s of self-mining hashrate, 921 bitcoin mined during the month and roughly $69 million of annualized recurring revenue from its AI Cloud business. Bitdeer also said it was in advanced negotiations for a potential colocation tenant at its Tydal, Norway site, as miners increasingly evaluate AI and high-performance computing uses for power assets.

That broader strategy places Bitdeer among a group of public miners trying to balance exposure to bitcoin mining with demand for AI infrastructure. But unlike peers that are mainly shifting existing mining campuses toward AI leasing, Bitdeer is also spending on the manufacturing side of the mining supply chain.

Catherine Guo, CEO of Bitdeer Industrial, said Nevada’s workforce, logistics network and business environment were factors behind the Sparks investment. Taylor Adams, president and CEO of the Economic Development Authority of Western Nevada, said the project would add advanced manufacturing and technology jobs to the region.

The facility is expected to begin contributing to Bitdeer’s manufacturing capacity as miners face a more selective hardware market. Lower hashprice can dampen broad equipment demand by extending payback periods for less efficient operators, but it can also accelerate replacement of older machines among miners that are able to keep investing through the downturn.