According to Cointelegraph, Trump’s latest tariff policy is impacting domestic cryptocurrency mining enterprises in the United States. This is because most of the country’s Bitcoin mining equipment is imported from Malaysia, Thailand, and Indonesia. Once the tariffs take effect, it will directly affect the import prices for purchasing mining equipment.
(Background: JPMorgan warns of “Trump tariff risks”: Global economic recession probability rises to 60%, and US inflation may spiral out of control)
(Context: A wave of “ASIC miner sell-offs” has emerged in the mining sector, and following the AI wave, graphics cards are making a comeback?)
The unprecedented tariff policy introduced by President Trump yesterday (3rd) has caused chaos in the market, significantly impacting global stock markets while also collapsing the cryptocurrency market. According to data from CoinGecko, Bitcoin has dropped from a peak of $88,500 on April 3rd to the current $82,737, a decline of up to 6.5%. ETH has currently fallen to $1,786, marking a new low since the end of October 2023. Major altcoins such as BNB, SOL, and XRP have also suffered severe declines, with market panic continuing to escalate.
Impact on US Mining Enterprises
It is worth mentioning that Trump’s latest tariffs have far-reaching effects on the cryptocurrency sector beyond just collapsing coin prices. According to a report from Cointelegraph yesterday (3rd), US cryptocurrency miners are also feeling panic regarding the introduction of these tariffs, as it will directly affect the prices of mining machines imported from outside the US. In this regard, Blockware Solutions Chief Analyst Mitchell Askew pointed out:
“Tariffs have a huge impact on Bitcoin miners; offshore supply will be compressed, which will intensify demand for US miners. If this coincides with a rise in Bitcoin prices, ASIC miners could surge by 5 to 10 times as they did in 2021.”
Additionally, Blockware CEO Mason Jappa noted that most Bitcoin mining equipment in the US is imported from Malaysia, Thailand, and Indonesia. The mining equipment that has already arrived in the US may become scarcer due to import restrictions, which could also drive up prices.
In this context, Lauren Lin, a manager at Bitcoin mining software company Luxor Technology, stated that Trump’s tariff policy has left the company in a frenzy, and mining enterprises are accelerating the transport of overseas mining equipment to the US.
How Large is the Bitcoin Mining Scale in the US?
According to public data, following China’s comprehensive ban on cryptocurrency mining in 2021, a large number of miners migrated to the US, particularly to states like Texas, Georgia, and New York. At the beginning of this year, industry analysis (such as Hashrate Index) indicated that the US has become the largest Bitcoin mining market globally, with its hash rate share possibly exceeding 40%, and even approaching 50%.
Moreover, the US hosts many large mining enterprises and facilities. For example, Riot Platforms’ mining site in Rockdale, Texas, is the largest single Bitcoin mining site in the US in terms of electricity consumption. Companies like Bitdeer and Core Scientific also operate large-scale facilities in the US and plan to expand further.
Mining Company Stock Prices Drop Collectively
In today’s stock market crash, Bitcoin mining companies were not spared either. According to Google Finance data, the stock performance of several major mining companies is as follows:
Marathon Digital Holdings (MARA): Closed down 9.58%, with a closing price of $11.23;
Riot Platforms (RIOT): Closed down 8.98%, with a closing price of $7.30;
Cipher Mining (CIFR): Closed down 12.83%, with a closing price of $2.31;
Core Scientific (CORZ): Closed down 15.08%, with a closing price of $7.15;
Hut 8 Corp (HUT): Closed down 11.05%, with a closing price of $11.91.
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