The American Bitcoin company is backed by the family of former U.S. President Donald Trump and has recently chosen to purchase up to 17,280 specialized integrated circuit (ASIC) devices from Bitmain, specifically for cryptocurrency mining.
The company purchased 16,299 Antminer U3S21EXPH units, providing a total computing power of 14.02 exahashes per second, with a transaction value of approximately $314 million.
This transaction does not include potential price increases, which may arise from the Trump administration's extensive trade tariffs and import duties on Bitmain mining hardware manufactured in China.
In response to tariff pressures, Bitmain has announced plans to open its first ASIC production facility in the U.S. by the end of the year, with the company planning to establish its headquarters in Florida or Texas.
Trade tariffs and other macroeconomic pressures have affected various aspects of the Bitcoin mining supply chain, with miners and hardware manufacturers adjusting their economic calculations to cope with the changing financial environment.
The mining industry responds to trade tariffs and economic uncertainty.
Tariffs are prompting major mining hardware manufacturers to consider relocating some operations to the United States to avoid import taxes on their products.
According to a study from the University of Cambridge, over 99% of Bitcoin mining hardware is manufactured by three companies: Bitmain, MicroBT, and Canaan, with Bitmain holding about 82% of the market share.
The Trump administration's strategy of using trade tariffs to bring manufacturing back to the U.S. has received mixed reviews. Critics argue that such policies could lead to long-term inflation and may backfire.
The CEO of BTC mining company Hashlabs, Jaran Mellerud, stated that the price increases caused by tariffs could lead to a collapse in demand from American miners.
ASIC manufacturers will face excess inventory due to insufficient demand, and they may export this inventory at lower prices to other countries, causing mining activities to shift back to those countries and putting American miners at a competitive disadvantage.
