Ongoing trade tensions may create a golden opportunity for American hardware manufacturers to expand domestic Bitcoin mining operations, according to a U.S.-based Bitcoin mining supplier.
U.S. President Donald Trump’s trade war with China and efforts to facilitate onshore Bitcoin mining could greatly benefit U.S. mining rig manufacturers, who currently own only a small portion of the market compared to their Chinese counterparts.
Although the U.S. contributes over 40% of the global Bitcoin network hash rate, it is still heavily reliant on Chinese mining rigs. Reports suggest that China-based Bitmain dominates the industry, controlling up to 90% of the Bitcoin mining hardware market.
Auradine’s Chief Strategy Officer, Sanjay Gupta, emphasized the importance of reducing U.S. dependence on foreign technology in Bitcoin mining, noting that Trump’s commitment to strengthening the domestic industry underscores this urgent need. He shared these insights in a recent interview with mainstream media.
Last year, U.S. Bitcoin companies faced a significant supply chain hurdle when thousands of Bitcoin mining rigs were detained at ports of entry by U.S. Customs and Border Protection, causing major disruptions in the industry.
One of the affected firms believed that the delays stemmed from a misunderstanding, with officials mistakenly classifying the chips as illegally imported Chinese radio frequency devices. It took several months before authorities began clearing the seized mining equipment.
Gupta argued that trade tensions have disrupted the flow of Chinese-origin Bitcoin mining rigs.
“These trade tensions have exacerbated supply chain disruptions, with many hardware shipments facing excessive delays and uncertainties,” Gupta said.
The United States was already in a competitive race with China for dominance in the high-end chip manufacturing industry. However, according to Gupta, recent trade tensions have further escalated the challenges faced by U.S.-based crypto miners.
Bitmain, a China-based company, is arguably the dominant player in the Bitcoin mining manufacturing market. To mitigate potential supply chain disruptions, it recently expanded its production line to the U.S.
Gupta stated that his firm is well-positioned to benefit from Trump’s ambitions to boost onshore manufacturing, as the resulting increase in electricity demand would place a significant strain on the power grid. This, he explained, makes it more crucial for Bitcoin miners to explore off-grid operations.
Auradine recently introduced its latest hydro-cooled Bitcoin miner, the Teraflux AH3880, entering the competitive landscape alongside industry giants like Bitmain, MicroBT, and Canaan.
When asked if a rise in U.S.-based Bitcoin mining could impact decentralization, Gupta argued that enhancing network security with more energy-efficient solutions in the U.S. would be a “net positive” for Bitcoin. However, he cautioned that rapid expansion could pose risks if it outpaces advancements in sustainability and decentralization.
According to the Hashrate Index, the United States and China collectively account for more than 95% of the Bitcoin network’s total hash power.