Chinese Bitcoin Mining Giants Shift Operations To The US Amid Trump’s Tariffs and National Security Concerns

Bitmain, Canaan, and MicroBT, three of the largest Bitcoin mining hardware companies responsible for the vast majority of global crypto mining infrastructure, are shifting their core operations to the United States. The move by the Chinese entities comes in response to growing trade tensions between the two global superpowers and rising national security concerns raised by the Trump administration.

Chinese Bitcoin Firms Moving Operations To The US: Historic Shift In Global Crypto Supply Chain

This ramps up Washington’s trade and tech rivalry with Beijing, and could reshape the cryptocurrency mining supply chain. It is not simply a response to circumvent President Donald Trump’s tariff threats, but a strategic realignment of the global Bitcoin and crypto mining infrastructure.

The shift could be traced back to Trump’s “Liberation Day” announcement on April 3, 2025, to impose a 30% import duty on high-tech equipment, including Bitcoin mining hardware, with an additional 20% tariff on mining equipment from China. This triggered the migration of large-scale Bitcoin miners to the United States.

Bitmain, Canaan, and MicroBT collectively control more than 90% of the global Bitcoin mining hardware market. According to a report by Forst & Sullivan, the mining rigs supplied by the three companies handled over 95% of the Bitcoin network’s total computing power, also known as hashrate, in 2023-2024.

Despite China’s 2021 domestic ban on all crypto-related activities, including mining, these companies continued to maintain market dominance by shifting their focus to high-performance chips tailor-made for supporting proof-of-work (PoW) blockchains like Bitcoin.

Bitmain, the largest Bitcoin mining hardware company in the world, headquartered in Beijing, began assembling its machines in the US shortly after Trump’s election victory in November 2024, after the then-president-elect signaled imposing pressures on Chinese tech imports.

Canaan, a company that used to be entirely based out of China, began production in the US earlier this year, labeling the move as “exploratory”. MicroBT followed suit shortly, announcing US-focused efforts aimed at avoiding potential tariffs and getting closer to its American clients.

Favorable Regulatory Regime Makes America an Epicenter for Bitcoin Miners

Following China’s embargo on crypto mining, all major mining entities relocated their operations to countries with favorable regulations, particularly to the United States. This led to America emerging as a global leader in Bitcoin mining, owning a significant share of the global hash rate.

According to data from the Cambridge Centre for Alternative Finance (CCAF), the country accounts for 35.4% of the total Bitcoin mining hash rate, which is the highest share globally.

President Trump has publicly supported the industry, emphasizing his desire for the US to become a “Bitcoin superpower”. His administration has already taken steps to facilitate the growth of crypto mining in the country, easing regulatory barriers and promoting the development of energy infrastructure tailored to support the industry.

US Secretary of Commerce, Howard Lutnick, has stated that the federal government is exploring the possibility of allowing miners to build their own power plants next to mining facilities to ensure a cost-effective and reliable energy supply. The administration is planning to allow miners to take over abandoned oil fields.

Over-Reliance on Chinese Bitcoin Hardware Poses “Strategic Vulnerability” for the US

While shifting manufacturing to the US may mitigate tariff pressures and allow the companies to remain competitive in the lucrative market, some persistent national security concerns persist.

Speaking to Reuters, Sanjay Gupta, the chief strategy officer at Auradine, a Marathon-backed US-based crypto hardware company, said that overreliance on Chinese-built mining rigs poses cybersecurity and infrastructure risks even if they are assembled in the US.

“Hundreds of thousands of these rigs are now connected to the US electrical grid. That’s not just an economic dependency; it’s a strategic vulnerability,” Gupta said.

The US is home to some of the largest Bitcoin mining companies, such as Marathon Digital, CleanSpark, Core Scientific, and Riot Platforms, but nearly all of them still rely heavily on Chinese-made rigs. This imbalance is what Gupta reiterated as “dangerous dependency”. He also warned that if China were to restrict exports or manipulte prices, then it would create a ripple effect that could cripple the global mining supply chain.

The increased migration of Chinese Bitcoin miners to the US isn’t without its risks. Recently, Sophgo, an AI-focused subsidiary of Bitmain, was added to the US Entity List, effectively blacklisting the company from accessing American tech, owing to national security concerns. While the company does not manufacture crypto mining equipment, it is involved in developing chips for AI computing.

Canaan relocated its headquarters to Singapore to distance itself from its Chinese roots. The company reported that 40% of its revenue during the 2024 financial year came from US clients. MicroBT, which is based in the Chinese province of Shenzhen, is exploring partnerships with US data centers and energy providers.

China’s Hardware Market Dominance Remains a Threat to America’s Bitcoin Ambitions

According to a research report by Statista, the global Bitcoin mining hardware sector is projected to hit $12 billion by 2028. This makes the ongoing battle over supply chains a high-stakes commercial issue. Bitcoin mining is becoming increasingly energy-intensive and reliant on specialized, heavy-duty chips, and America demands more output, but China supplies the majority of hardware.

Bitcoin mining will be a key topic in the ongoing trade discussions between Washington and Beijing, and one that demands reaching consensus. The next five years are critical for both nations, as time will reveal whether the US can become self-sustainable in developing key technologies and if Chinese firms will maintain their industry dominance.

At the time of writing, Bitcoin (BTC) is trading at $106,002, up 1.16% in the last 24 hours.