The United States became a global leader in Bitcoin mining following China’s 2021 crackdown on the crypto industry.
With cheap electricity and strong capital markets, American mining firms quickly gained dominance, and the election of pro-crypto President Donald Trump initially fueled optimism for continued growth.
However, recent developments are casting a shadow over that momentum.
U.S. Bitcoin Mining Faces Risks Over Dependence on Southeast Asian Equipment
At the heart of the issue is the U.S. mining sector’s dependence on imported equipment from Southeast Asia.
Countries like Thailand, Malaysia, and Indonesia manufacture the majority of mining machines used in the U.S.
These machines are now facing steep tariffs of up to 36% under a new Trump administration trade policy, although the implementation has been temporarily paused for 90 days. Currently, a general 10% tariff remains in effect.
For companies like Luxor Technology, which imports machines from Thailand, the proposed tariff hike could be devastating.
Ethan Vera, the company’s COO, told Fortune that a 36% increase would severely damage their return on investment.
“Those machines are never going to return the capital if there’s another 36% on,” Vera warned. “The margins are just too tight.”
Major mining operations in states like Georgia, Texas, and New York rely on constant hardware upgrades, a process that represents a significant portion of operational expenses.
Marathon Digital, one of the largest U.S. mining firms, owns around 400,000 machines and mined 9,430 Bitcoin last year—equivalent to over $796 million at current prices.
Tariffs on top-tier machines, which already cost between $4,000 and $5,000, could squeeze profits to the breaking point.
Despite President Trump’s pledge to ensure all remaining Bitcoins are mined on American soil, his tariff policy appears to be having the opposite effect.
An index tracking leading publicly traded mining firms has dropped 12% since Trump unveiled the tariff plan on April 2, underperforming the S&P 500, which is down 8% over the same period.
Crypto Miners Race Against Time as Tariff Pause Triggers Import Rush
The 90-day pause has prompted a flurry of contingency planning. Some companies are delaying contracts with manufacturers, while others are rushing to import as many machines as possible before the July deadline.
Taras Kulyk, CEO of Synteq Digital, said several major clients are already scouting international locations for future deployments.
“I’ve already gotten three mandates to look for sites outside the U.S.,” he noted.
Even if the tariffs are eventually rolled back, Kulyk said the unpredictability of Trump’s trade policies is unsettling for investors.
“You need stable policy to attract the billions required to rebuild manufacturing,” he said.
Not all firms are ready to abandon their U.S. expansion plans.
Vishnu Mackenchery of Compass Mining told Fortune that his company remains committed to growing its operations in the U.S., but warned that unresolved tariff questions are creating serious logistical hurdles.
“We want to continue building here in the U.S,” he said. “So to continue down that path, we hope that a resolution comes soon regarding the tariffs.”
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