- Trump advocates for U.S. Bitcoin mining, challenging China’s Bitmain.
- U.S. companies diversify supply chains, reducing reliance on Chinese-made rigs.
- Rising competition from U.S. firms pressures Bitmain.
Former President Donald Trump’s call for Bitcoin to be “mined, minted, and made” in the United States could significantly challenge the dominance of China-based Bitmain Technologies Ltd., according to a Bloomberg report.
Bitmain, a leading manufacturer of Bitcoin mining equipment, currently controls an estimated 90% of the global market for mining rigs. However, increasing U.S.-China tensions may lead to more competition from American firms.
Bitmain’s influence in the Bitcoin mining industry has often been compared to De Beers’ historic control over the diamond market, where it could influence global prices by adjusting production levels.
However, Trump’s stance has encouraged some U.S.-based companies to diversify their supply chains, taking advantage of the current geopolitical climate. This shift is driven by concerns that relying on Chinese-made equipment could pose national security risks, especially given the strained relations between the two countries.
The political environment for Bitmain in the U.S. has been deteriorating, particularly as the U.S. now hosts the majority of global Bitcoin mining operations. Concerns have also been raised about the potential for Chinese-made mining equipment to be used for espionage.
This issue came to the forefront in May 2024 when President Joe Biden ordered Chinese mining company MineOne to vacate and sell a property in Wyoming. While Bitmain has moved some production to Southeast Asia to counter U.S. tariffs on Chinese goods, the company does not currently manufacture in the U.S. Competition is also intensifying, with companies like California-based Auradine and Texas-based Core Scientific Inc. stepping up to challenge Bitmain’s market position.
Despite these pressures and changing supply chains, Bitmain’s rigs are still highly regarded for their efficiency and performance. However, U.S. companies like CleanSpark Inc. and Riot Blockchain Inc. have started sourcing equipment from other manufacturers.
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