American Bitcoin, a mining company supported by US President Donald Trump’s family members, recently exercised an option to purchase up to 17,280 ASIC (application-specific integrated circuits) mining units from Bitmain.
Earlier this month, the firm finalized an order for 16,299 Bitmain Antminer U3S21EXPH devices, which provide a combined computing power of 14.02 exahashes per second (EH/s). The acquisition cost is approximately $314 million, per reports from TheMinerMag.
Significantly, the agreement excludes any additional costs arising from new US trade tariffs and import duties imposed by the Trump administration. These tariffs apply to Bitmain equipment manufactured in China and have impacted the Bitcoin mining hardware sector.
Responding to these trade tensions, Bitmain announced plans to open its first Bitcoin mining hardware manufacturing plant in the United States by the end of 2025. The company is also considering establishing its headquarters in either Florida or Texas.
Trade tariffs and broader economic challenges have strained the Bitcoin mining supply chain, affecting miners and hardware manufacturers alike, as they adjust to evolving market conditions.
Industry Reaction to Trade Challenges and Tariffs
The US trade tariffs have encouraged leading mining hardware manufacturers to explore relocating part of their operations to the United States to minimize tariff impacts.
A University of Cambridge study reveals that over 99% of Bitcoin mining hardware is produced by three firms: Bitmain, MicroBT, and Canaan. Bitmain dominates with approximately 82% of the global market share.
While the Trump administration’s tariffs aim to boost domestic manufacturing, critics warn these measures may lead to inflation and reduced demand. Jaran Mellerud, CEO of Hashlabs, predicts these tariffs could cause a significant decline in demand from US miners.
As a result, ASIC manufacturers may end up with surplus inventory, which they might sell abroad at lower prices. This scenario risks shifting mining activities away from the US, counteracting the administration’s goal of reshoring crypto industry operations.
