Chinese Bitcoin Mining Giants Shift Production to U.S. Amid Tariffs

Chinese Bitcoin mining hardware manufacturers Bitmain, Canaan, and MicroBT, which collectively hold over 90% of the global market, are opening production facilities in the United States in an attempt to counter the rising tariffs imposed by President Trump.

The decision to establish the facility is highly driven by trade tensions and U.S. security concerns, a sign of the major realignment in the cryptocurrency supply chain. Tariffs introduced in April 2025 are forcing this tactical change, with potential impacts on global mining trends.

Trade War Pushes Bitmain, Canaan, MicroBT to U.S. Factories  

Trump’s “Liberation Day” tariffs, announced April 2, 2025, impose a 10% baseline duty on all imports, plus an additional 20% on Chinese goods, with a further 125% tariff on Chinese imports. 

Southeast Asian nations with Chinese assembly facilities could face duties up to 145% on tariffs.

These tariffs threaten to increase costs for Bitcoin mining rigs, essential for blockchain transaction processing, which ultimately pushed Chinese manufacturers to localize production in the United States.

Market leader Bitmain began production in the United States in December 2024, following Trump’s election, to mitigate tariff impacts. Canaan, now headquartered in Singapore, began trial production after the April tariff declaration, with 40% of 2024 revenues coming from the United States. MicroBT is also setting up U.S. facilities to minimize supply chain risks. 

While these efforts intend to reduce and bypass import costs, the United States Customs scrutiny could delay rig deliveries.

National Security Concerns Shadow Chinese Bitcoin Mining Firms’ U.S. Expansion  

The United States authorities have flagged national security concerns over reliance on Chinese mining rigs, with most figures connected to the domestic power grid, though precise numbers remain unverified at the moment. 

The establishment of the facilities is seen as strategic, citing chip supply chain vulnerabilities and past issues with Bitmain rigs. Canaan maintains that its rigs are “useless” for anything but Bitcoin mining, reducing immediate direct threats.

The switch to United States manufacturing could change the $12 billion mining hardware market, which is projected to grow by 2028, according to the industry estimates. 

Bitmain, Canaan, and MicroBT control over 90% of the market, with Bitmain supplying 90% of United States rigs. However, the Bitcoin rigs that are manufactured in the United States could have higher baseline costs, which may influence miners’ profitability. 

Bitmain’s AI affiliate, Sophgo, blacklisted by the American government in January 2025 for allowing China’s chip ambitions, adds operational complexity.

Trade War Reshapes Global Bitcoin Mining Supply Chain  

The production shift is part of a general supply chain adjustment in response to the United States-China trade war, described as “structural” by Conflux Network’s Guang Yang.

China’s 2021 crypto ban did not affect its manufacturers’ control, fueled by advanced chip technology. Local production in the U.S. could boost their resilience while avoiding tariff and security concerns. 

Prior to the tariff hikes, miners are said to charter flights to import equipment, proof of the urgency in the supply chain. American rival Auradine, backed by MARA Holdings, is demanding that Chinese supplies be restricted, showing competitive pressures. 

With these firms shifting operations, America could become a hub for Bitcoin mining hardware, potentially making it less expensive for American miners and giving greater control locally. However, higher production costs and delivery delays pose challenges, potentially affecting global mining dominance in this new era.