Bitcoin Miners Adjusting Operations Ahead of Upcoming Tariffs
Bitcoin miners are reacting to new tariffs proposed by the Trump administration, which will increase costs for ASIC miners and related equipment. Key points include:
- Miners are in a rush to adjust orders due to potential tariffs on imports from Southeast Asia, with firms chartering flights at significantly increased costs.
- A 90-day pause has been implemented on most tariffs, reducing them to 10% after this period, but uncertainties remain about future tariff rates.
- The U.S. bitcoin mining sector imported over $2.3 billion worth of ASIC miners last year, primarily from Malaysia, Thailand, and Indonesia.
- U.S. manufacturing capacity for ASICs is limited; new plants opened by Bitmain and MicroBT still produce less than their overseas facilities.
- Increased costs from tariffs on raw materials will affect pricing competitiveness for U.S. miners compared to international counterparts.
- The tariffs could lead to a stagnation in the U.S. mining industry and may drive consolidation as older equipment becomes attractive for acquisition.
- Kulyk noted that Canada may become a more appealing business environment for miners despite existing power application moratoriums.
- Vera warned that the tariffs might shift hashrate growth away from the U.S., comparable to the impact of China's 2021 mining ban.
The situation underscores the geopolitical challenges facing the U.S. bitcoin mining sector and its implications for global competition.