Chinese supplier under scrutiny for disrupting US Bitcoin miners
Recent events have caused a disruption in the process of US crypto miners receiving their mining equipment from the major Chinese supplier, Bitmain Technologies. These delays are posing a threat to the competitiveness and profit margins of American miners as the company faces increased scrutiny amid ongoing trade tensions between China and the US. The delays come in the wake of heightened Customs and Border Protection scrutiny that has affected recent shipments of mining machines to US clients, believed to be linked to the blacklisting of Bitmain’s AI affiliate Xiamen Sophgo Technologies by the US Commerce Department earlier this year. The US government accuses the firm of working to advance China’s goals in advanced chip production.
This situation has put US President Donald Trump’s trade policies and his goal of promoting American cryptocurrency mining in a conflicting position. Bitmain, known for dominating 90% of the market for specialized computers used in Bitcoin mining, is already grappling with tariffs imposed by Trump in the past. The recent additional tariffs announced by Trump have only exacerbated the situation.
Customs officials at US points of entry have reportedly been scrutinizing and inspecting Bitmain mining machines more thoroughly than before, demanding certificates of origin from brokers. This increased inspection has triggered delays in the delivery of mining equipment to US-based companies, such as MARA Holdings, CleanSpark, Bit Digital, and others. Some companies have experienced delays of a couple of weeks in receiving their orders, while others have thousands of rigs held up due to these more stringent checks.
This bottleneck in the supply chain has been ongoing for several months but has worsened recently. When the inspected machines are finally released to buyers, they are facing hefty fees from Customs and Border Protection, adding up to significant costs depending on the number of rigs and the duration of the hold. The situation has put American mining operators in a tough spot, especially considering the need for continual upgrades and improvements in machinery to stay competitive in the market.
Despite these challenges, Bitmain has a history of finding ways to navigate trade difficulties. In the past, the company has set up production facilities in countries like Indonesia, Malaysia, and Thailand to avoid tariffs on Chinese imports. Now, the establishment of a facility in the US, with the location undisclosed, signals a strategic move to cater to North American customers more efficiently.
As the crypto industry in the US continues to evolve and face challenges from geopolitical factors and trade tensions, miners and companies are bracing themselves for potential hurdles that may impact their operations in the long run. The recent developments with Bitmain serve as a reminder of the complex interplay between global trade dynamics and the growing digital currency sector that American miners must navigate to sustain and grow their businesses.
