Bitdeer to Build First US Mining Rig Factory in Nevada, Aiming for 10,000 Units Per Month

Nasdaq-listed Bitcoin mining firm Bitdeer (BTDR) has announced plans to construct a $36 million manufacturing facility in Sparks, Nevada. The plant, which will be the company’s first in the United States, is expected to be operational by the end of this year and is projected to produce up to 10,000 mining rigs per month.

Strategic Expansion into US Manufacturing

The decision to build a domestic factory comes as Bitdeer seeks to strengthen its supply chain resilience amid ongoing geopolitical uncertainties and trade tensions affecting hardware imports from Asia. By establishing a production base in Nevada, the company aims to reduce dependency on overseas suppliers and better serve the North American market.

Bitdeer was founded by Jihan Wu, a prominent figure in the crypto mining industry who previously co-founded Bitmain, the world’s largest manufacturer of Bitcoin mining hardware. Wu left Bitmain in 2019 following internal disputes and subsequently launched Bitdeer, which has since grown into a major mining operator and service provider.

Financial Context and Strategic Pivot

The Nevada facility investment aligns with Bitdeer’s broader financial strategy. Since February, the company has been pursuing a “zero $BTC” policy, selling all Bitcoin it mines rather than holding it on its balance sheet. This approach contrasts with many mining firms that accumulate Bitcoin as a long-term reserve asset. The move may reflect a focus on liquidity and operational cash flow, particularly as the company invests heavily in infrastructure expansion.

Bitdeer’s decision to manufacture in the US also mirrors a broader trend among crypto mining hardware companies seeking to localize production. The CHIPS Act and other federal incentives have made domestic manufacturing more attractive, though the industry still faces challenges related to energy costs and regulatory uncertainty.

Implications for the Mining Industry

The new factory could have several ripple effects. For one, it may help stabilize hardware pricing and availability for North American miners, who have historically been subject to supply chain disruptions from Asia. Additionally, US-based manufacturing could offer faster delivery times and better after-sales support for domestic customers.

However, the facility’s output of 10,000 units per month represents a relatively small fraction of global mining rig production. Bitmain, for instance, ships hundreds of thousands of units annually. Still, the move signals growing confidence in the US as a viable manufacturing hub for specialized crypto hardware.

Conclusion

Bitdeer’s Nevada factory marks a significant step in the company’s evolution from a mining operator to a vertically integrated hardware manufacturer. By bringing production closer to its primary market, the firm aims to improve supply chain control and reduce costs. The project is expected to create local jobs and bolster Nevada’s position as a hub for crypto-related industry. Completion by year-end will be a key milestone to watch.

FAQs

Q1: Where exactly will Bitdeer’s new factory be located?
The facility will be built in Sparks, Nevada, a city near Reno in the western part of the state.

Q2: How many mining rigs will the factory produce?
Bitdeer expects the plant to produce up to 10,000 mining rigs per month once fully operational.

Q3: Why is Bitdeer building a factory in the US now?
The company aims to reduce reliance on Asian supply chains, improve delivery times for North American customers, and take advantage of US manufacturing incentives. It also aligns with its current “zero $BTC” strategy of selling all mined Bitcoin for liquidity.