American Bitcoin, a Bitcoin (Btc) The mining company supported by US President’s family members Donald Trump, has made an option to buy up to 17,280 specific integrated circuits (ASICs), hardware for crypto mining, from Bitmain earlier this month.
The mining company bought a armada of 16,299 Antminer U3S21Exph unit from Bitmain, capable of 14.02 exahashes per second (eh/s) of computing power, for about $ 314 million, according to Theminermag.
Deal also does not include any potential price increase from the Trump administration Sweeping trading tariffs and import duties, which will affect bitmain mining hardware made in China.
In response to tariff pressure, Bitmain announced that it was Open the first ASIC production facility in the US by the end of the year. The company also plans to open a headquarters in either Florida or Texas.
Trade tariffs and other macroeconomic pressure has Create a strain at all levels of the Bitcoin mining supply chain, as the miners and hardware manufacturers look alike their economic calculations in response to the shift of the financial scene.
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The mining industry responds to trade tariffs and economic uncertainty
Tariffs motivate the leading mining hardware manufacturers to consider moving at least one part of their US operations to prevent taxation taxes on their products.
Over 99% of all Bitcoin mining hardware is made by three manufacturers: Bitmain; MicRont; and canaan, according to a Study Published by the University of Cambridge.
Bitmain is the largest mining manufacturing company in the world through a wide margin, with about 82% of the total market component.
The Trump administration’s approach of using trading tariffs to restore US manufacturing has been met with mixed reactions.
Critics say the rules are inflationary in the long term and can backfire. Jaran Mellerud, CEO of BTC Mining Company Hashlabs, said the price increase from tariffs could lead to a Falling Demand from US miners.
ASIC manufacturers will have inventory, without demanding, which they can export to other countries at a cheaper price, Mellerud Says.
It will return mining to other countries and put US miners in a lack of competitive, contrary to the purpose of the Trump administration that Reshing the crypto industry In the United States.
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