The trade conflict initiated by President Trump with China, along with his initiatives to boost domestic Bitcoin mining, may greatly benefit American manufacturers of mining equipment, who currently command only a modest fraction of the market compared to their dominant Chinese rivals.
Currently, the United States contributes over 40% to the global Bitcoin network’s hashrate, yet it remains largely dependent on mining rigs produced in China. Reports indicate that the Chinese firm Bitmain holds up to a 90% share of the Bitcoin mining equipment manufacturing market.
“Trump’s ongoing commitment to bolster the US Bitcoin mining sector underscores the critical need to reduce reliance on overseas technology,” remarked Sanjay Gupta, chief strategy officer at Auradine, in a recent discussion.
Last year, American Bitcoin companies faced significant supply chain issues, as thousands of miners were stuck at ports due to scrutiny from U.S. Customs and Border Protection.
One affected company attributed the delay to a misconception that the devices were illegal Chinese radio frequency imports, resulting in months of hold-ups before the equipment was finally released.
Gupta noted that the ongoing tensions between the U.S. and China have further complicated the importation process for foreign Bitcoin miners.
“These trade disputes have caused considerable disruptions in supply chains, leading to delays and uncertainties for many hardware shipments,” Gupta explained.
While the U.S. was already contending with China for supremacy in high-end chip production, these recent trade tensions have only made it more difficult for American crypto miners, he added.
Bitmain is reported to dominate the Bitcoin mining equipment sector and expanded its production facilities to the U.S. last December in an effort to enhance supply chain efficiency.
Gupta mentioned that his firm is well-positioned to benefit from Trump’s strategy to increase domestic manufacturing, as it could lead to a “dramatic rise in electricity demand,” which would apply significant stress on the electrical grid, prompting Bitcoin miners to seek off-grid solutions.
Auradine has also recently unveiled its Teraflux AH3880 hydro-cooled Bitcoin miner, positioning itself against major competitors like Bitmain, MicroBT, and Canaan.
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When asked if an increase in Bitcoin mining activities in the U.S. might threaten the decentralization of Bitcoin, Gupta expressed that enhancing the Bitcoin network with more energy-efficient solutions domestically would ultimately be beneficial, though he acknowledged potential risks if growth exceeds advancements in sustainability and decentralization.
According to the Hashrate Index, over 95% of the network’s hash power is currently concentrated in the U.S. and China.
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