Bitdeer goes from manufacturer to Bitcoin miner: turns on its machines due to a drop in sales

By Hannah Perez

Bitdeer transforms: reduces its manufacturing business and leverages its inventory to compete with its own customers by mining Bitcoin. A bold strategic change in the face of low demand for mining hardware.

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• The Bitdeer company is shrinking its cryptocurrency miner manufacturing business.
• He opts for a bold strategy: he takes advantage of his machines that he does not sell to mine Bitcoin.
• It added 20 EH/s power this year and hopes to continue competing with its own customers.
• His goal: to become one of the five largest Bitcoin miners in the world.

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Bitdeer Technologies Groupa global technology company specialized in mining Bitcoin and other cryptocurrencies, is adopting a bold strategy to counter the decline in demand for its mining equipment.

According to a report by Bloombergthe company, co-founded by cryptocurrency veteran Jihan Wu, has decided to deploy its own Bitcoin mining machines, becoming a direct competitor to its clients. This tactic, which takes advantage of its manufacturing and operating capacity, seeks to position Bitdeer among the top five cryptocurrency miners worldwide

Strategic change due to low demand

Bitdeerwhich trades on Nasdaq, not only manufactures mining hardware, such as its renowned Series A, but also operates data centers, designs infrastructure, and offers a cloud mining platform. However, given the slowdown in equipment sales, the company has chosen to capitalize on its unique advantage: using its own machines to extract Bitcoin directly.

In August, according to a regulatory filing cited by BloombergBitdeer quadrupled its own mining capacity compared to the previous year, demonstrating a clear commitment to diversify its income and strengthen its position in the market.

This strategy, which Bloomberg described as “play with both hands“, allows Bitdeer mitigate the effects of low hardware demand. Unlike other manufacturers that depend exclusively on sales, Bitdeer can redirect its teams toward mining itself, a move that gives it flexibility in a sector known for its volatility.

““Our strategy was to increase our self-mining hash rate while bringing rigs to market in smaller quantities so that people could feel comfortable with us as a new provider.”said Jeff LaBerge, director of Capital Markets and Strategic Initiatives at Bitdeerin an interview.

Bitdeer Increases Its Hash Rate While Accumulating Bitcoin

The approach of Bitdeer It is not without controversy. When mining Bitcoin Directly, the company now competes with the same customers to whom it sells its equipment and services. This change in role, as the publication highlights, represents a unique dynamic in the industry, where hardware manufacturers can become main players in the mining market.

After adding 20 exahashes per second (EH/s) this year, the goal of Bitdeer is ambitious: to reach a hash rate of 40 EH/s and establish itself as one of the five largest cryptocurrency miners globally. This goal, which LaBerge expects to be reached this month, involves a significant expansion of its infrastructure and operational capacity.

As part of these plans, Bitdeer It has already opened facilities in Norway and Bhutan, and plans to bring hundreds of megawatts online through additional projects in Ohio, Alberta and Ethiopia, according to the report.

Furthermore, parallel to its mining expansion, Bitdeer is reinforcing its commitment to Bitcoin as a treasury asset. In February, the company acquired 50 BTC at an average price of USD $81,475 per coin, bringing its total holdings to 640 BTC. This move follows the trend of other mining giants, such as MARA Holding and Riot Platformswhich have also integrated Bitcoin as a key component of its corporate reserves, reflecting its confidence in the long-term potential of the cryptocurrency.

A long-term bet on Bitcoin

The strategy of Bitdeer illustrates how cryptocurrency companies are adapting to an ever-changing economic and technological environment; especially amid a steady growth in mining difficulty — which has increased 55% in the last 12 months, according to data cited from CryptoQuant— and the lower profitability of this activity.

By combining hardware manufacturing, own mining and accumulation of Bitcoin as a reserve, Bitdeer seeks to diversify its sources of income and reduce its dependence on equipment sales.

In a sector as dynamic as that of cryptocurrencies, the bet of Bitdeer by own mining and the accumulation of Bitcoin could redefine the rules of the game. For now, the company is turning on its machines and looking to the future with a clear vision: not only to manufacture the hardware, but also to dominate in the mining sector. Bitcoin.

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Article written with the help of AI, edited by DailyBitcoin

Image generated with an AI tool, under a free use license

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