A Bitcoin mining venture with ties to the Trump family has made a bold move, scooping up a potential arsenal of 17,280 cutting-edge Bitcoin mining machines from Bitmain. This substantial purchase of ASICs signals a significant expansion for American Bitcoin and underscores the continued interest in cryptocurrency mining, even amidst market fluctuations. The deal positions the company to potentially become a major player in the competitive landscape of Bitcoin production.
In a monumental power play, one mining behemoth just dropped a cool $314 million on a staggering arsenal from Bitmain: 16,299 Antminer U3S21EXPH units. This silicon surge unleashes a mind-boggling 14.02 exahashes per second (EH/s) of raw computing muscle, according to reports from TheMinerMag. It’s less a purchase, more a declaration of dominance in the relentless race for digital gold.
Beyond the bottom line, the deal cleverly sidestepped a ticking time bomb: Trump-era trade tariffs. These import duties, particularly stinging for Bitmain’s China-manufactured mining rigs, threatened to inflate costs. This exclusion offered a vital shield against geopolitical headwinds.
Facing the heat of escalating tariff tensions, cryptocurrency mining giant Bitmain is making a bold move: planting its flag on American soil. By year’s end, the company will inaugurate its inaugural US-based ASIC production facility. But the expansion doesn’t stop there; Bitmain is also eyeing either the sun-kissed shores of Florida or the sprawling landscapes of Texas for its new American headquarters, signaling a major strategic shift.
Bitcoin mining is caught in a vise. Trade wars and economic storms are twisting the supply chain, forcing miners and hardware makers to recalculate their strategies in a volatile financial arena.
Related: Jack Dorsey’s Block targets 10-year lifecycle for Bitcoin mining rigs
Mining industry responds to trade tariffs and economic uncertainty
To dodge hefty import taxes, top mining hardware giants are eyeing a stateside shift, potentially reshaping the US as a new hub for crypto mining tech.
A mere trio of companies – Bitmain, MicroBT, and Canaan – forge over 99% of the Bitcoin mining hardware that powers the decentralized revolution. This staggering concentration, unearthed by a University of Cambridge study, reveals just how few hands control the picks and shovels of the digital gold rush.
Bitmain doesn’t just lead the mining hardware pack; it practicallyisthe pack. Holding a staggering 82% of the global market, they’re not just the biggest player; they’re a force of nature reshaping the crypto landscape.
Mining hardware market share is divided between three large manufacturers. Source: University of Cambridge
Trump’s tariff gambit: a bold plan to resurrect American manufacturing, or a high-stakes trade war with uncertain consequences? The jury’s still out.
“These policies, critics warn, are a ticking time bomb of inflation, potentially detonating with unforeseen consequences. Jaran Mellerud, Hashlabs CEO, fears the tariff-induced price surge could trigger a catastrophic demand implosion within the US mining sector.”
ASIC manufacturers will then have inventory, without demand, which they can export to other countries at cheaper prices, Mellerud said.
The move risks triggering a mining exodus, kneecapping US miners and handing the crypto advantage to foreign rivals – a direct contradiction of the Trump administration’s ambition to bring the digital gold rush back home.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
Thanks for reading Trump-backed American Bitcoin orders 16K Bitmain ASICs amid ongoing trade war
