Bitcoin miners are adjusting their business approaches as the ongoing trade tensions between the US and Canada create increased uncertainty around energy prices and regulations.
US President Donald Trump has threatened to raise tariffs on steel and aluminum from 25% to 50%, prompting the Ontario government to reconsider its plans to boost power export costs to the US.
Ontario’s Premier Doug Ford had indicated a willingness to increase surcharges or even potentially “shut off the electricity completely” if provoked further. However, it seems he has moderated his position for the moment.
While the trade conflict appears to be in a temporary pause, some cryptocurrency companies are already contemplating potential shifts in policy to safeguard their growth.
Bitcoin miners foresee shifts in energy markets
Ben Ganon, CEO of the Canadian Bitcoin mining company Bitfarms, expressed to Bloomberg on March 11 that the recent surge in energy prices, had they materialized, would have had minimal impact on their operations.
Bitfarms predominantly operates in Quebec and British Columbia, both regions rich in hydroelectric power relative to their overall energy supply. In contrast, Ontario’s energy market is “not as robust,” having made significant cuts to its baseload capacity over recent years.
Despite Bitfarms’ current favorable energy situation, Ganon remarked that the tariffs “will influence future policy and regulatory frameworks.”
He mentioned that the company is seeking “greater access to electricity markets” and fewer regulations for establishing new enterprises or energy applications.
Energy policy remains a divisive topic in Canadian politics, with detractors accusing the Liberal government—currently led by Prime Minister Mark Carney—of damaging the Canadian economy through their emission-reduction strategies.
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Ganon stated: “The opportunities available in the United States also exist in Canada. I believe this situation will ultimately lead to a more deregulated, seamless, and efficient market as it has long been bogged down by regulatory red tape.”
How can Bitcoin miners benefit from tariffs?
Tariffs on products like steel, aluminum, and other industrial goods—aimed at promoting domestic production in the US—also impact Bitcoin miners, sometimes with unexpectedly positive outcomes.
Ganon pointed out that while miners cannot influence Bitcoin prices, they do have control over their electricity expenses. “One strategy we can employ is to identify areas with underutilized energy that used to support heavy industry, which has been relocated overseas in the past two to three decades.”
Bitfarms operates in Pennsylvania, a state once bustling with industry that has been significantly impacted by the offshoring of the American steel and metals sectors. These assets may soon gain high demand if the US manufacturing sector revitalizes.
Ganon suggested that Bitcoin miners have been heavily investing in energy infrastructure that “previously powered aluminum smelters and steel refineries that were outsourced.” He added, “Now Bitcoin miners possess these assets, which are becoming valuable again as the industry shifts back to America.”
Trade tariffs impact Bitcoin mining hardware
While Canadian miners like Bitfarms may not be overly worried at this time, Trump’s tariffs on China have begun to affect American crypto miners who rely on importing hardware from Chinese companies like Bitmain.
Shipping delays for Bitcoin mining equipment from China to the US have been significant as of February 2025, attributed to the US’s decision to blacklist Bitmain’s AI affiliate, Xiamen Sophgo Technologies.
Increased customs fees for inspecting Bitmain-related hardware have already cost US miners as much as $500,000, according to a logistics executive at Compass Mining. New tariffs could render future imports of next-generation mining equipment to the US “completely cost-prohibitive,” warned the CEO of Synteq Digital.
Chinese producers of mining hardware like Bitmain might establish operations in other nations to evade US sanctions. During Trump’s initial term, as he implemented a 25% tax on various consumer electronics from China, many mining hardware manufacturers relocated to Malaysia, Indonesia, and Thailand to sidestep these tariffs.
Bitmain even announced plans in December 2024 to set up a production line in the US to “offer faster response times and more efficient services to North American clients.” However, the specific location of this US facility has not been disclosed.
Trump’s economic strategies present a mixed bag for the crypto sector, with unpredictable fluctuations in trade policies adding to market uncertainty. Concurrently, the European Union has announced intentions to impose counter-tariffs on the US, further jeopardizing asset valuations.
Bitcoin price chart Sept. 1, 2024 to March 13, 2025. Source: TradingView
Marcin Kazmierczak, co-founder and COO of a blockchain oracle firm, predicted that this could lead Bitcoin to plummet to $75,000, a value not seen since November 2024.
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