China’s Bitcoin Miners Pivot to U.S Amid Rising Tariffs and Power Shift

The top three Chinese Bitcoin miners, Bitmain, Canaan, and MicroBT, are reportedly moving part of their production to the United States. This shift comes as trade tensions rise once again under President Donald Trump’s renewed tariff policies. These new tariffs push companies to rethink how and where they make and ship technology products, especially in the crypto industry. Bitcoin Miners Makes A Strategic Move to Avoid Tariffs Companies’ decisions are primarily driven by the growing costs of business across borders. By building mining rigs inside the U.S., these firms aim to avoid extra fees caused by tariffs on foreign-made tech goods. Bitmain, the largest of the three, has already started production in the U.S .,just after President Trump won the 2024 election. Canaan is not far behind. One of its executives recently confirmed that the company is testing early-stage production in the U.S. This is to see if the move is practical over time. Meanwhile, MicroBT has announced a localization plan to reduce its exposure to tariffs and maintain access to the U.S. market. Chinese Bitcoin Miners’ Firms Move May Stir U.S. Security Fears Bitmain, Canaan, and MicroBT produce over 90% of all Bitcoin mining machines worldwide. These machines are designed to solve complex math problems that power and keep the Bitcoin network secure. These companies ensure they stay competitive by shifting part of their operations to the U.S.. Even as global trade rules become more complex, this shift could help with costs and bring new challenges. Chinese firms operating in U.S. tech spaces may raise national security concerns. This is especially true given the past political tensions between the two countries. U.S. regulators have a history of being cautious about Chinese involvement in critical technology infrastructure. In January, two prominent U.S. lawmakers questioned the Treasury Department for details after a Chinese state-sponsored hacking group breached U.S. Treasury systems , compromising certain unclassified documents. America’s Role in Bitcoin Mining Grows The move also reflects a bigger change in where Bitcoin mining power is located. New data shows that the U.S. quickly becoming the world leader in industrial Bitcoin mining. On June 17, VanEck’s Mathew Sigel shared research showing that U.S.-listed miners make up 31.6% of the global Bitcoin hashrate. Hashrate is the computing power used to run and secure the Bitcoin network. The higher the hashrate, the more mining activity is taking place. In April 2024, the U.S. share of the hashrate was just 21%. In the last year, that number has grown by nearly 50%. In addition, reports show Bitcoin mining difficulty has slightly dropped after a record high, giving miners brief relief from rising costs and lower rewards. The post China’s Bitcoin Miners Pivot to U.S Amid Rising Tariffs and Power Shift appeared first on TheCoinrise.com .

Source: The Coin Rise