Bitcoin (BTC) mining company backed by members of the family of US President Donald Trump, US Bitcoin exercised the option to purchase up to 17,280 application-specific integrated circuits (ASICs) from Bitmain earlier this month.
The mining company purchased a fleet of 16,299 Antminer U3S21ECTPH units from Bitmain, with a 14.02 Excel Single (Eh/s) computing power (Eh/s) computing power (Eh/s) of approximately $314 million, according to Theminermag.
The transaction also ruled out potential price increases from the Trump administration’s swept trade duties and import duties affecting bitmain mining hardware manufactured in China.
In response to tariff pressure, Bitmain announced that it will open its first ASIC production facility in the United States by the end of the year. The company will also open its headquarters in either Florida or Texas.
Trade tariffs and other macroeconomic pressures have put a strain on all levels of the Bitcoin mining supply chain as miners and hardware producers similarly adjust their economic accounts in response to the changing financial environment.
Related: Jack Dorsey’s Block targets the 10-year life cycle of Bitcoin mining rigs
Mining responds to trade tariffs and economic uncertainty
The tariffs spurred major mining hardware manufacturers and considered moving some of their operations to the United States at least to avoid import taxes on products.
Over 99% of all Bitcoin mining hardware are produced by three manufacturers. Microbt;According to a study published by the University of Cambridge, Canaan.
Bitmain is the world’s largest mining hardware manufacturer, accounting for around 82% of its total market share.
Mining hardware market share is divided into three large manufacturers. sauce: Cambridge University
The Trump administration’s strategy of using trade tariffs to bring manufacturing back to the US is full of mixed reactions.
Critics say that policy is inflation in the long term and could backfire. Jaran Mellerud, CEO of BTC Mining Company Hashlabs, said price increases from tariffs could lead to a collapse in demand from US miners.
ASIC manufacturers can have stock without demand and export it to other countries at a cheaper price, Mellerud said.
This would put US miners at a competitive disadvantage, contrary to the Trump administration’s goal of promoting mining in other countries and repurposing the US crypto industry.
magazine: We risk being “front run” in Bitcoin reserves by other countries: Samson Mo