US Bitcoin Miners Prepare for Business Disruptions Due to China Tariffs
Bitcoin (BTC) miners in the United States are preparing for business disruptions as the trade war between the US and China continues.
On Thursday, April 9 the White House announced that the 125% import tax on China was in addition to a 20% tariff that President Trump imposed for China’s role in supplying fentanyl to the US. President Trump clarified that he has raised tariffs on Chinese goods by a total of 145% since taking office.
Bitcoin Miners Face Increasing Buildout Costs
While Trump’s newly enforced tariffs with China are having a major impact on the S&P 500, Bitcoin miners are also being hit hard.
The US is heavily reliant on Bitcoin mining hardware produced in Southeast Asia, especially by companies like Bitmain, MicroBT, and Canaan.
On April 2, Trump’s hiked tariffs also placed levies on Thailand, Indonesia and Malaysia. These regions are home to some of the largest mining rig manufacturers.
As a result, US-based miners that source equipment from these regions are facing business disruptions.
Jaime McAvity, CEO of Cormint Data Systems – a US-based mining company – told Cryptonews that Cormint sources components from China including miners, transformers, pdus, power supplies and containers.
“The tariffs will contribute to higher buildout costs,” McAvity said. “Miners that were manufactured in China are now completely uneconomical to import to the USA.”
McAvity further stated that US firms that ordered equipment from China but have yet to take delivery will likely sell them in the Chinese market.
“This will contribute to weaker demand and lower prices — creating an attractive investment opportunity for non-US based miners,” he said.
Jill Ford, founder of Bitford Digital – a Texas-based company specializing in Bitcoin mining solutions and hosting services – told Cryptonews that the newly imposed China tariffs will hit American Bitcoin miners the hardest.
According to Ford, US miners are now looking at a 22–36% increase in the cost of mining machines.
“That kind of margin shift is significant – especially in an industry where efficiency is everything,” Ford said. “When US miners are forced to pay that much more per machine, it becomes incredibly difficult to remain competitive with international miners who aren’t facing the same cost pressures.”
Short-Term Disruption or Major Setback?
Given this, Ford believes that the newly imposed US tariffs on China will create a major setback for the growth and global competitiveness of the American Bitcoin mining sector.
For context, the American Bitcoin mining industry is an important player in the global market.
The United States accounted for over 40% of the Bitcoin network’s global hashrate — the total computing power securing the Bitcoin protocol — at the end of 2024.
Two US-based mining pools, Foundry USA and MARA Pool, accounted for over 38.5% of all blocks mined.
According to TheMinerMag, Foundry USA grew its hashrate from 157 exahashes per second (EH/s) at the start of 2024 to roughly 280 EH/s by December.
Yet with the majority of mining hardware being manufactured in China, Ford noted that US miners are looking at an added 36% cost per machine.
“That kind of price hike will clearly force tough decisions. For many miners, it will no longer make economic sense to mine in the US – we can expect to see more mining operations shift overseas where equipment is more affordable and the market is healthier,” she stated.
On the other hand, McAvity pointed out that as a result of the tariffs mining suppliers are in the process of onshoring production to the US – including Cormint. With this in mind, he views the tariffs with China as “a temporary business disruption.”
“Since US production costs are higher than China, it will contribute to a long-term increase in costs, but it shouldn’t be too bad,” McAvity said.
Echoing this, Ford remarked that it will be a smart move for US Bitcoin miners to start exploring alternatives from US-based manufacturers like Auradine, for example.
“These alternatives are becoming more viable, and we’re already seeing global leaders like Whatsminer producing machines domestically. Bitmain is also planning to open a US warehouse this summer,” she said.
Tariff’s Impact on Bitcoin Hashrate
Higher operational costs in the US will make it less attractive for miners to expand their operations. However, miners in countries unaffected by the tariffs could gain a competitive edge.
“The tariffs will likely slow hashrate growth in the US, but I don’t see them slowing global hashrate overall,” Ford said. “In fact, we’ll probably see hashrate continue to rise outside the US as mining operations shift to more cost-effective regions.”
While this may be, McAvity pointed out that most miners with already installed Hashrate will likely welcome the slow growth in new Hashrate.
Echoing this, Scott Offord, owner and founder of Bitcoin Mining World, told Cryptonews that the short-term effect might actually help existing miners with slightly better profitability.
“Longer-term concerns about decentralization remain valid,” Offord said. “Miners should closely monitor how hashrate distribution shifts globally as a result.”
US Bitcoin Miners Must Adapt or Die
In addition to monitoring hashrate distribution, Ford stated that adaptability will be the key to success for US based miners.
“Miners who diversify their supply chains and stay nimble will be in the best position to weather this,” she said.
Shedding light on this, Offord advises Bitcoin miners dealing with tariffs to be proactive.
“Secure existing in-stock inventory quickly, explore sourcing from lower-tariff countries, and prioritize partnerships with manufacturers assembling rigs in the USA. Optimize your current equipment’s lifespan and efficiency through careful maintenance and better tuning,” he said.
Indeed, well-prepared Bitcoin miners will likely be impacted much less.
Zach Bradford, CEO of US-based Bitcoin miner CleanSpark, told Cryptonews that CleanSpark is prepared for the tariffs, noting that the majority of the company’s miners and infrastructure required to meet near-term goals are already stateside.
“While these tariffs may slow down competitors who lack our scale and resilience, we’re confident in our ability to maintain our momentum and lead the industry forward,” Bradford said.
The post US Bitcoin Miners Prepare for Business Disruptions Due to China Tariffs appeared first on Cryptonews.
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US Bitcoin Miners Prepare for Business Disruptions Due to China Tariffs
Bitcoin (BTC) miners in the United States are preparing for business disruptions as the trade war between the US and China continues.
On Thursday, April 9 the White House announced that the 125% import tax on China was in addition to a 20% tariff that President Trump imposed for China’s role in supplying fentanyl to the US. President Trump clarified that he has raised tariffs on Chinese goods by a total of 145% since taking office.
Bitcoin Miners Face Increasing Buildout Costs
While Trump’s newly enforced tariffs with China are having a major impact on the S&P 500, Bitcoin miners are also being hit hard.
The US is heavily reliant on Bitcoin mining hardware produced in Southeast Asia, especially by companies like Bitmain, MicroBT, and Canaan.
On April 2, Trump’s hiked tariffs also placed levies on Thailand, Indonesia and Malaysia. These regions are home to some of the largest mining rig manufacturers.
As a result, US-based miners that source equipment from these regions are facing business disruptions.
Jaime McAvity, CEO of Cormint Data Systems – a US-based mining company – told Cryptonews that Cormint sources components from China including miners, transformers, pdus, power supplies and containers.
“The tariffs will contribute to higher buildout costs,” McAvity said. “Miners that were manufactured in China are now completely uneconomical to import to the USA.”
McAvity further stated that US firms that ordered equipment from China but have yet to take delivery will likely sell them in the Chinese market.
“This will contribute to weaker demand and lower prices — creating an attractive investment opportunity for non-US based miners,” he said.
Jill Ford, founder of Bitford Digital – a Texas-based company specializing in Bitcoin mining solutions and hosting services – told Cryptonews that the newly imposed China tariffs will hit American Bitcoin miners the hardest.
According to Ford, US miners are now looking at a 22–36% increase in the cost of mining machines.
“That kind of margin shift is significant – especially in an industry where efficiency is everything,” Ford said. “When US miners are forced to pay that much more per machine, it becomes incredibly difficult to remain competitive with international miners who aren’t facing the same cost pressures.”
Short-Term Disruption or Major Setback?
Given this, Ford believes that the newly imposed US tariffs on China will create a major setback for the growth and global competitiveness of the American Bitcoin mining sector.
For context, the American Bitcoin mining industry is an important player in the global market.
The United States accounted for over 40% of the Bitcoin network’s global hashrate — the total computing power securing the Bitcoin protocol — at the end of 2024.
Two US-based mining pools, Foundry USA and MARA Pool, accounted for over 38.5% of all blocks mined.
According to TheMinerMag, Foundry USA grew its hashrate from 157 exahashes per second (EH/s) at the start of 2024 to roughly 280 EH/s by December.
Yet with the majority of mining hardware being manufactured in China, Ford noted that US miners are looking at an added 36% cost per machine.
“That kind of price hike will clearly force tough decisions. For many miners, it will no longer make economic sense to mine in the US – we can expect to see more mining operations shift overseas where equipment is more affordable and the market is healthier,” she stated.
On the other hand, McAvity pointed out that as a result of the tariffs mining suppliers are in the process of onshoring production to the US – including Cormint. With this in mind, he views the tariffs with China as “a temporary business disruption.”
“Since US production costs are higher than China, it will contribute to a long-term increase in costs, but it shouldn’t be too bad,” McAvity said.
Echoing this, Ford remarked that it will be a smart move for US Bitcoin miners to start exploring alternatives from US-based manufacturers like Auradine, for example.
“These alternatives are becoming more viable, and we’re already seeing global leaders like Whatsminer producing machines domestically. Bitmain is also planning to open a US warehouse this summer,” she said.
Tariff’s Impact on Bitcoin Hashrate
Higher operational costs in the US will make it less attractive for miners to expand their operations. However, miners in countries unaffected by the tariffs could gain a competitive edge.
“The tariffs will likely slow hashrate growth in the US, but I don’t see them slowing global hashrate overall,” Ford said. “In fact, we’ll probably see hashrate continue to rise outside the US as mining operations shift to more cost-effective regions.”
While this may be, McAvity pointed out that most miners with already installed Hashrate will likely welcome the slow growth in new Hashrate.
Echoing this, Scott Offord, owner and founder of Bitcoin Mining World, told Cryptonews that the short-term effect might actually help existing miners with slightly better profitability.
“Longer-term concerns about decentralization remain valid,” Offord said. “Miners should closely monitor how hashrate distribution shifts globally as a result.”
US Bitcoin Miners Must Adapt or Die
In addition to monitoring hashrate distribution, Ford stated that adaptability will be the key to success for US based miners.
“Miners who diversify their supply chains and stay nimble will be in the best position to weather this,” she said.
Shedding light on this, Offord advises Bitcoin miners dealing with tariffs to be proactive.
“Secure existing in-stock inventory quickly, explore sourcing from lower-tariff countries, and prioritize partnerships with manufacturers assembling rigs in the USA. Optimize your current equipment’s lifespan and efficiency through careful maintenance and better tuning,” he said.
Indeed, well-prepared Bitcoin miners will likely be impacted much less.
Zach Bradford, CEO of US-based Bitcoin miner CleanSpark, told Cryptonews that CleanSpark is prepared for the tariffs, noting that the majority of the company’s miners and infrastructure required to meet near-term goals are already stateside.
“While these tariffs may slow down competitors who lack our scale and resilience, we’re confident in our ability to maintain our momentum and lead the industry forward,” Bradford said.
The post US Bitcoin Miners Prepare for Business Disruptions Due to China Tariffs appeared first on Cryptonews.
Read More