Chinese bitcoin mining equipment manufacturers Bitmain, Canaan, and MicroBT, which together control over 90% of the global mining rig market, are establishing production facilities in the United States.

This shift comes as US tariffs on Chinese imports, implemented during the Trump administration, impact the cryptocurrency supply chain. Bitmain began US production in December, while Canaan has started trial manufacturing in the country to mitigate tariff effects.

MicroBT has also announced plans to localize its operations in the US. The companies aim to lessen the impact of tariffs and address potential geopolitical concerns related to Chinese technology.

The global bitcoin mining hardware market is projected to reach an estimated US$12 billion by 2028, despite ongoing US-China tensions.

However, concerns remain about the security risks associated with Chinese-made rigs linked to US infrastructure. Chief strategy officer of US-based Auradine Sanjay Gupta noted that over 90% of mining hardware comes from China.

This is concerning, especially given that only 30% of mining activity occurs in North America.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Global crypto hardware market faces restructuring under geopolitical pressure

The relocation of Chinese bitcoin mining hardware manufacturers to the US represents a significant shift in a market projected to grow from $10.5 billion in 2024 to US$22.63 billion by 2033 1.

This movement reflects a larger pattern of supply chain restructuring, with Chinese firms like Bitmain, Canaan, and MicroBT (controlling over 90% of global mining rig production) now establishing US operations specifically in response to tariff pressures 2.

The timing of these manufacturing shifts corresponds to US tariff announcements, with Bitmain starting US production in December following Trump’s election and Canaan beginning trial production after the April tariffs 2.

This geographic redistribution of manufacturing capability mirrors earlier patterns seen in other technology sectors during previous US-China trade tensions, where companies restructured operations to maintain market access.

The current 30% tariff imbalance (10% baseline plus 20% China-specific) has created sufficient economic pressure to force even dominant market players to reconsider their manufacturing strategies despite their first-mover advantages in developing specialized mining chips.

2️⃣ Growing concerns over technology supply chain security in critical infrastructure

The heavy reliance on Chinese-manufactured mining equipment has raised national security concerns, with some US experts describing “hundreds of thousands” of Chinese mining rigs connected to the US electrical grid as a potential security risk 2.