Chinese Bitcoin miners are relocating production – the USA is upgrading!

Chinese Bitcoin miners are relocating production – the USA is upgrading!

China's leading Bitcoin mining rig manufacturers, including Bitmain, Canaan and MicroBT, are moving some of their production to the US. This decision is a response to heightened trade tensions and President Donald Trump's renewed tariff policies. Bitmain already started production in the USA in December 2024. Canaan and MicroBT are following suit to test the viability of their US operations and secure their market presence. This shift aims to minimize the impact of trade tariffs and reduce U.S. dependence on foreign technology, a central concern of U.S. economic policy.

The three companies, which together produce over 90% of the world's Bitcoin mining machines, sit at the intersection of the Chinese and U.S. crypto industries. In the long term, this development could lead to greater integration of both markets. According to VanEck's Mathew Sigel, the US share of global Bitcoin mining output is already 31.6%, making the US an increasingly important center for industrial Bitcoin mining.

Challenges caused by customs and competitive pressure

However, the shift to the US is not without its challenges. The Bitcoin mining industry is currently facing increased competitive pressure as the hashrate reached an all-time high of 850 million TH/s in March 2025. This increase shows that more miners are joining the network and confidence in the value and security of Bitcoin is growing. However, despite the higher hashrate, mining profits have not increased; The cost of mining one Bitcoin has doubled to $87,000 since the beginning of 2024.

The main reasons for this increase in costs are the increased electricity prices and the high operating costs for specialized mining hardware (ASICs). Smaller miners are particularly affected because they lack economies of scale and do not have access to cheaper electricity prices. Additionally, the industry is weighed down by trade restrictions in the U.S., particularly regarding ASIC miners from Bitmain, a Chinese company that accounts for approximately 59% to 76% of the total Bitcoin hashrate.

Regulatory hurdles and strategic alliances

US mining companies are under pressure from delayed Bitmain shipments due to stricter customs controls and new tariffs on Chinese imports. Since 2018, the US government has imposed tariffs of up to 27.6% on imported mining equipment from China, and recent actions have increased regulatory requirements and trade pressure. These tariffs increase operating costs for US-based miners and disrupt supply chains.

To be successful in this challenging environment, Hut 8 Corp. formed a partnership with Eric Trump and Donald Trump Jr. to create American Bitcoin Corp. to become the leading Bitcoin mining operation and build a strategic Bitcoin reserve.

The long-term impact of these developments on the global Bitcoin mining landscape remains to be seen. While some analysts see the possibility of greater collaboration between the crypto industries in China and the US, regulatory pressure could significantly impact the industry's dynamics.