Bitdeer started construction of a $36 million advanced electronics manufacturing facility in Sparks, Nevada. This step will be the company’s first production and assembly site in the United States. The 187 thousand square meter facility is aimed to be completed by the end of 2026 and to produce up to 10 thousand SEALMINER devices per month.
The new facility will increase production capacity
Bitdeer is known as a technology company that carries out crypto mining and data center activities. The new facility in Nevada is expected to create approximately 70 jobs in engineering, technical expertise and support. With this investment, the company aims to move production closer to its customers in the USA and make its supply chain more resilient.
Bitdeer Industrial Chairman Paul Hanson stated that the Sparks facility will support supply chain resilience and bring production closer to U.S. customers.
Bitdeer Industrial Senior Manager Catherine Guo also said that Nevada’s workforce structure, logistics network and business environment had an impact on this choice. The new facility is part of a broader growth plan with the company’s US data centers and innovation center in San Jose, California.
Low hash price puts pressure on miners
The timing of the investment is noteworthy. The hash price, one of the income indicators in Bitcoin mining, remains close to historical low levels throughout the industry. According to Hashrate Index data, the spot hash price is approximately $29.81, while Luxor recorded a daily low of $27.89 on February 24. The average for March was $31.27.
This picture became even more evident after the Bitcoin halving in April 2024. Declining block rewards, increasing total computing power on the network, and weak revenue from transaction fees have depressed revenue per unit of computing power. For this reason, companies with lower electricity costs and more efficient devices come to the fore, while the payback period for old generation machines has been extended.
Mini dictionary: Hash price is the measure that shows the estimated revenue that a certain amount of computing power miners can produce in a day. It is usually monitored on a PH/s/day basis and is considered one of the key indicators in assessing mining profitability.
Against this pressure, Bitdeer highlights its vertical integration strategy that reduces dependence on external suppliers. The company deploys self-developed SEALMINER devices in its mining fleet. The energy efficiency of the SEALMINER A4 series, which started mass production in April, was announced as 9.45 joules/terahash.
Operational growth continues
The company’s performance in May also indicated that growth continued. Bitdeer produced 921 Bitcoins in May. This figure means a 370 percent increase compared to the same period last year. The company’s own mining power also reached 70.2 EH/s on an annual basis.
Bitdeer is also expanding beyond traditional mining. The company said it generated annualized recurring revenue of $69 million from its AI cloud business. It also announced that it is in advanced discussions with a potential co-location tenant for its site in Norway’s Tydal region.
