Bitmain, Canaan, and MicroBT shift Bitcoin mining rig production to the U.S. to evade Trump’s tariffs, reshaping crypto supply chains.
Bitmain, Canaan, and MicroBT, the top three Chinese Bitcoin miners, are all reportedly relocating their operations to the United States in anticipation of a potential tariff assault by President Trump, according to the most recent report. The tariff impact is once again redefining the region’s supply chain. Furthermore, these Chinese miners could benefit from Trump’s crypto-friendly policies and election pledge to produce all Bitcoins in the United States last year.
Chinese Miners Move to the US Over Tariff Concerns
Bitmain, Canaan, and MicroBT, which collectively control a staggering 90% of the global mining rigs, are currently contemplating the establishment of a base in the United States. This indicates that the impact of Trump tariffs on Bitcoin miner manufacturers is significant and has also contributed to the recent volatility in the crypto market.
Nevertheless, establishing US bases could mitigate tariffs but may also exacerbate US security concerns regarding China, which encompass sectors such as energy security and semiconductor manufacturing, according to Reuters. Guang Yang, the chief technology officer of Conflux Network, a crypto technology provider, stated:
“The U.S.-China trade war is triggering structural, not superficial, changes in Bitcoin’s supply chains”. Moreover, for U.S. firms, “this goes beyond tariffs. It’s a strategic pivot toward ‘politically acceptable’ hardware sources”.
Bitmain, Canaan, and MicroBT Announce Their Bitcoin Mining Strategies
In December, Bitmain, the world’s largest manufacturer of Bitcoin mining rigs, initiated production of mining rigs in the United States. The company characterized this move as a “strategic move” in response to Donald Trump’s Presidential election victory the previous month.
In a similar vein, Canaan’s senior executive, Leo Wang, informed Reuters that the company had commenced trial production in the United States to evade Trump tariffs that were implemented in response to the “Liberation Day levies” on April 2. n contrast, MicroBT, which was ranked third, declared that it is “actively implementing a localization strategy in the U.S.” to “avoid the impact of tariffs.”
Chinese counterparts are the focus of US Bitcoin miners
Auradine, a US Bitcoin miner and mining equipment manufacturer, has been advocating for restrictions on Chinese supplies to increase competition in the hardware sector, with the support of MARA Holdings. Sanjay Gupta, the chief strategy officer of Auradine, stated:
“While over 30% of global bitcoin mining occurs in North America, more than 90% of mining hardware originates from China representing a major imbalance of geographic demand and supply”.
Gupta characterized the presence of “hundreds of thousands” of Chinese mining rigs connected to the US electrical grid as a substantial security danger.
Despite the conclusion of the US-China agreement last week, the repercussions of Trump’s tariffs remain uncertain.