CleanSpark Inc. Faces Potential $185 Million Tariff Liability from US Customs
CleanSpark Inc. (NASDAQ: CLSK) faces a potential tariff liability of up to $185 million after the US Customs and Border Protection (CBP) claimed that its Bitcoin mining rigs imported in 2024 were of Chinese origin. The company disputes this allegation, asserting that documentation confirms the machines' non-Chinese origin and has not provisioned for these charges as it considers a cash outflow unlikely.
Key points:
- Tariff liability estimated at $185 million due to alleged Chinese origin of equipment.
- Stock declined over 5% amid investor concerns despite strong quarterly results.
- Q3 revenue reported at $198.6 million, net income at $257.4 million.
- Company's hashrate reached 50 exahashes per second using US infrastructure.
Similar challenges are faced by publicly-listed miner IREN, which is contending with a potential $100 million tariff dispute. Both companies are challenging CBP's claims based on supplier documentation.
This situation highlights increased scrutiny on the supply chains of cryptocurrency mining firms and may lead to significant changes in procurement strategies within the industry, especially amid rising US-China trade tensions.