Bitdeer invests $36M in Nevada factory as mining margins tighten

Bitdeer Technologies Group began construction on a $36 million electronics manufacturing plant in Sparks, Nevada, its first US assembly site for Bitcoin mining hardware.

"Producing our advanced SEALMINER units right here in Nevada reflects our long-term commitment to building capacity and nurturing the talent necessary to support our growing digital infrastructure operations in America," Paul Hanson, Chairman of Bitdeer Industrial, said.

The 187,000-square-foot facility, slated for completion by the end of 2026, is expected to produce 10,000 SEALMINER computing units each month. The plant will create 70 local jobs spanning engineering, technician, and support roles, according to the company. Bitdeer secured tax incentives from Nevada that reduced sales taxes to 2 percent from 6 percent on qualifying transactions, Catherine Guo, CEO of Bitdeer Industrial, said.

The investment comes as Bitcoin mining margins remain under pressure following the April 2024 halving, which cut block rewards to 3.125 BTC. Bitdeer has since adopted a zero-BTC policy, selling all mined Bitcoin rather than holding it on its balance sheet, prioritizing liquidity over long-term reserve accumulation. The company's short interest stood at 34.27 percent of float as of mid-June, reflecting persistent bearish positioning despite the expansion into hardware manufacturing.

Supply Chain Pivot

The Sparks facility marks a strategic shift for Bitdeer, which was founded by former Bitmain co-founder Jihan Wu. The company joins a growing list of mining hardware firms moving production onshore as US tariffs on Asian electronics imports and geopolitical uncertainties disrupt traditional supply routes. The plant will consume 3 to 5 megawatts of power and 400,000 to 500,000 gallons of water annually, far less than a typical Bitcoin mining data center, Guo said.

Local Economic Impact

The factory will complement Bitdeer's existing US data centers and its innovation hub in San Jose, California. Taylor Adams, President and CEO of the Economic Development Authority of Western Nevada, said the project strengthens Nevada's position as a growing hub for innovation and next-generation industry. The first SEALMINER units from the Sparks facility are expected to be operational by January 2027.

This article is for informational purposes only and does not constitute investment advice.