American Bitcoin acquired 16,299 Antminer units from Bitmain for $314 million, adding 14.02 EH/s capacity.
The deal protects against tariff increases as U.S. tariffs on Chinese miners reach 57.6%.
Critics warn that tariffs could drive mining operations overseas, undermining U.S. leadership goals in the cryptocurrency industry.
American Bitcoin Company (ABTC), backed by members of the Donald Trump family, has signed a deal to purchase 16,299 Antminer U3S21EXPH units from Bitmain.
ABTC has acquired mining equipment in bulk from a Chinese company.
The purchase is estimated to be worth approximately $314 million. It will provide about 14.02 exahashes per second (EH/s) of computing power. According to TheMinderMag, this acquisition brings the company closer to its goal of reaching 25 EH/s.
The agreement with Bitmain, a Chinese company and the largest manufacturer of Bitcoin mining hardware in the world, explicitly excludes potential price increases from the new U.S. tariffs.
American Bitcoin financed the purchase by pledging 2,234 BTC and using a $46 million deposit that has already been paid. ABTC is a majority-owned subsidiary of Hut 8, and the purchase followed Hut 8's operation of the Vega site in Texas, which is the main facility for ABTC's new fleet.
The impact of the trade war on cryptocurrency mining in the United States.
The Bitcoin mining industry is facing the trade tariff impacts of the Trump administration. These tariffs create a financial burden on miners who rely on imported equipment. Customs duties on machines from China can reach 57.6%. This has prompted major hardware manufacturers to rethink their strategies.
Bitmain, which is estimated to hold 82% of the global mining hardware market, has responded to tariff pressures. It plans to open its first ASIC production facility in the United States by the end of 2025 and establish a headquarters in Florida or Texas.
The shift towards production in the United States is a direct result of the tariffs. These policies have made the U.S. one of the least competitive places to import mining equipment.
Critics warn of dire consequences.
Critics warn that the administration's new tariff policies may backfire. The increased costs from these tariffs could reduce demand from American miners, potentially driving mining operations to other countries. Ultimately, this will undermine the government's goal of making the United States a leader in the cryptocurrency industry.
Yaran Millerod, CEO of Hashlabs, provided his perspective on the situation.
He said, "What is the most obvious impact of these tariffs? A significant increase in the prices of mining machines in the United States."
Millerod added that importing machines to the United States will now cost at least 24% more than tariff-free countries like Finland.
Experts said that "as machine prices rise in the United States, they may paradoxically fall in the rest of the world. With reduced demand from American miners, manufacturers will have excess inventory. To clear it, they are likely to lower prices to attract buyers in other regions."