Bitdeer Shifts to Bitcoin Mining Amid Tariffs, Price Drop

Bitdeer Technologies Group, a publicly listed company, has announced a strategic shift from manufacturing and selling mining equipment to directly mining Bitcoin. This decision comes amidst a backdrop of significant changes in the global market, including the imposition of tariffs by the Trump administration and a notable decrease in the Bitcoin hashrate over the past month. The company, based in Singapore and listed on the Nasdaq exchange, has traditionally specialized in trading mining equipment. However, recent disruptions in the market have prompted Bitdeer to adapt its business model.

Bitdeer's new strategy involves leveraging the 90-day grace period for tariffs to purchase a large amount of mining equipment. This move is aimed at mitigating potential global supply chain disruptions and increasing domestic production of Bitcoin mining equipment in America, rather than relying on imports from China. The company's decision to mine Bitcoin itself is a response to the cooling of the Bitcoin mining industry and the reduced profitability due to a 30% drop in Bitcoin's price from its market high. The Bitcoin halving in April 2024, which reduced the block reward to 3.125 BTC, has further exacerbated the challenges faced by miners.

The Bitcoin hashrate, a critical metric for measuring mining profitability, has declined since the halving event. Despite this, Bitdeer remains optimistic about the potential for profitability in Bitcoin mining. The company plans to rapidly import mining equipment from Southeast Asia within the 90-day tariff pause period. This strategic move is expected to provide Bitdeer with a competitive edge, given its experience in procuring cheap mining equipment and navigating the complexities of the global supply chain.

The global supply chain has faced significant shocks following the announcement of tariffs, with mining equipment being particularly vulnerable due to its manufacturing base in China. Bitdeer's decision to enter the Bitcoin mining sector could provide much-needed competition for its rivals, who are also grappling with the challenges posed by the trade war. However, the rapid changes in business models by Bitcoin companies in response to the tariffs may increase their risk exposure.

Bitdeer's financial performance has also been impacted by the recent market conditions. The company reported lower-than-expected earnings and revenues for the fourth quarter of 2024, leading to a 28% drop in its stock price in February 2025. The Bitcoin halving, which reduced the block reward from 6.25 to 3.125 BTC, was cited as a significant factor influencing the company's financial outcomes. The combination of reduced mining rewards, a 30% drop in Bitcoin's price, and the pressure from tariffs has created a challenging environment for mining businesses.

Despite these challenges, Bitdeer is expanding its business into Artificial Intelligence and High-Performance Computing, leveraging large data centers in Texas and Ohio. The company has also extended its operations into Canada and Ethiopia, demonstrating its commitment to diversifying its revenue streams and adapting to the evolving market landscape. Bitdeer's strategic shift towards Bitcoin mining and its expansion into new business areas reflect its proactive approach to navigating the complexities of the global market and the cryptocurrency industry.