US duties are reducing demand for mining equipment, forcing Bitdeer to shift to offline mining and local production despite financial losses and risks.
Uncertainty surrounding the Trump administration's proposed import trade duties has led to a significant drop in demand for cryptocurrency mining equipment in the U.S., creating serious challenges for the industry. The new duties, including potential rates of up to 245% on goods from China, could dramatically increase the cost of ASIC miners, causing miners to delay purchases. In response, #Bitdeer Technologies, one of the sector leaders, is reshaping its strategy, emphasizing autonomous mining and launching production of its own equipment in the U.S. to reduce dependence on international supply.
The decline in demand has been exacerbated by the impact of the 2024 bitcoin #halving, which cut the reward per block to 3.125 #BTC, reducing mining yields by 46% and profits by 57%, according to #JPMorgan. Bitdeer, which reported a net loss of $531.9 million for the fourth quarter of 2024, is actively investing in ramping up hash rate to 40 EH/s by the end of 2025 and doubling energy capacity to 1 GW by 2026. These initiatives, backed by a $100 million investment from Tether, are designed to strengthen the company's position in a turbulent market.
Bitdeer's decision to localize production in the #US is in line with the Trump administration's policy of strengthening the domestic economy, but comes with risks. Uncertainty over duties could raise equipment prices, reducing the competitiveness of U.S. miners. In addition, Bitdeer's large investments in #ASIC chips and infrastructure, including power supply for #AI, have yet to pay off, raising questions about short-term financial sustainability. However, the company's strategic turnaround and investor interest point to its potential to become a leader in mining and high-performance computing in the long term.
