Bitdeer launches $36 million facility in Nevada! What does this mean for Bitcoin miners?

Bitdeer has begun construction of an advanced electronics manufacturing plant in Sparks, Nevada, with an investment of $36 million. The site marks Bitdeer’s first production and assembly facility in the United States. Expected to be completed by the end of 2026, this massive 187,000 square meter plant aims to roll out up to 10,000 SEALMINER devices per month.

New facility to boost production capacity

Recognized for its cryptocurrency mining and data center operations, Bitdeer is positioning the Nevada facility as a game changer for its expansion in the U.S. The plant is set to employ approximately 70 engineers, technical specialists, and support staff. By investing locally, Bitdeer plans to move manufacturing closer to its American clientele while increasing the resilience of its supply chain.

Bitdeer Industrial CEO Catherine Guo highlighted Nevada’s workforce quality, logistics infrastructure, and business climate as key factors behind the site selection. The new plant forms a cornerstone of Bitdeer’s wider U.S. expansion strategy, complementing existing data centers and its innovation hub in San Jose, California.

Low hash price creates new hurdles for miners

The timing of this investment is noteworthy, as industry revenue indicators, such as the hash price in Bitcoin mining, have hovered near historic lows. According to Hashrate Index, the spot hash price has stagnated around $29.81, with a recent bottom of $27.89 recorded by Luxor on February 24 and a March average of $31.27.

This trend intensified following the April 2024 Bitcoin halving. Block rewards dropped, total network computing power continued to rise, and revenue from transaction fees stayed weak, gradually squeezing profitability per unit of compute. In this environment, companies operating efficient equipment and benefiting from low electricity costs have pulled ahead, while the payback period for older-generation machines has stretched even further.

Quick glossary: Hash price is the estimated daily income generated by a given amount of mining computing power. Expressed as PH/s/day, it serves as a fundamental benchmark for mining profitability.

In response to these pressures, Bitdeer is deploying a vertical integration strategy to reduce reliance on external suppliers. The company has started using its own SEALMINER devices within its mining operations. The SEALMINER A4 series, which entered mass production in April, delivers energy efficiency of 9.45 joules per terahash.

Operational growth on the rise

Bitdeer’s May performance showed clear signs of growth. The company mined 921 Bitcoins last month, a robust 370 percent increase compared to the same period in the previous year. Its self-mining capacity surged annually to 70.2 exahashes per second (EH/s).

Bitdeer’s ambitions now extend beyond traditional crypto mining. The company recently announced recurring annualized revenue of $69 million from its artificial intelligence cloud division. It is also engaged in advanced negotiations for a potential co-location partner at its site in Norway’s Tydal region.

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