Bitcoin miners in U.S. fear wipeout as 36% tariffs threaten to ‘destroy’ thriving industry

When China erupted in the encryption industry in 2021, many bitcoin miners created a store in the United States instead. This step has resulted as a mixture of cheap energy and deep capital markets that the United States has become the world’s leading production, and after the election of the pro -Rettepoto Donald Trump, the future of American miners seemed brighter than ever. In April, all of this changed.

This is because, even when the United States took the initiative of production, American miners continued to rely heavily on Asia -machine machines – machines that are now undergoing large definitions of up to 36 % as Trump aims to strangle external imports.

Most Bitcoin mining machines are produced in the United States in Southeast Asia in countries such as Thailand, Malaysia and Indonesia. According to the TROMP-tariff policy that was to enter into force on April 9, but was placed for a period of 90 days ago-these countries face a tariff ranging from 24 % to 36 %. Meanwhile, 10 % year is still in place.

Ethan Vera, the company’s chief operational officer, Ethan Vera, said, said. luck. He says the customs tariff by 36 % on these “Palmyra” machines is the return of his company to invest.

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Most bitcoin mining occurs in the United States in Georgia, with Texas and New York’s followers closely. These operations are costly for mining companies that spend most of their money on updating the machines and electricity they require to operate. Marathon Digital, one of the largest players in the industry, owns Marathon Digital, about 400,000 miners in Bitcoin and produced 9430 Bitcoins last year, at a value of more than $ 796 million at current prices. Vera said that adding 36 % to the current price of mining machines, which ranges between $ 4,000 and $ 5,000, would make the margins of narrow industry more narrow.

“These machines will never return the capital if there are another 36 %,” he said. “The margins are very narrow.”

The future of bitcoin mining in the United States

Trump made several promises to the encryption industry on the campaign trail, including his pledge to ensure that all the remaining bitcoin coins in the United States have in turn triumphed over a wave of optimism about encryption in the United States on a wider scale – one that included President Trump’s largest sons launching a mining project from American Bitcoin.

However, the president’s amazing tariff policy now may have an opposite effect.

Since investors expect the effects of huge definitions on the industry, the mining companies circulating publicly feel pain. While the S&P 500 decreased by 8 % since April 2, when Trump initially announced his overwhelming tariff plan, an index tracked the stock price in the largest mining companies decreased by 12 %.

Bitcoin mining companies in the United States use 90 days to assess their options. Some companies have postponed their long -term contracts with manufacturers, while others accelerated to import the largest possible number of machines before the higher definitions entered into force in July.

Even the economic uncertainty has sparked a boost to explore the expansion outside the United States. luck. He said: “I have already obtained three states from some of our largest partners to start searching for immediate purchase sites and publication outside the United States.”

Even if the definitions are short -term, Colic says that the inability to predict Trump’s policies makes his customers uncomfortable. He said: “If you cannot set a clear agenda or a clear policy, you will not attract hundreds of billions of dollars that you will need to build a new manufacturing base.”

Other companies have been fixed in their commitment to expanding within the United States, despite uncertainty. I tell Vishnu Mackechery, global logistics manager and project manager at Compass Mining, luck His company plans to continue mining in America. However, in order to do this, his company needs to see a decision on the tariffs before you can continue to import machines.

“We want to continue building here in the United States,” he said. “So to continue this path, we hope that the decision will come soon with regard to the definitions.”

This story was originally shown on Fortune.com

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2025-04-17 10:30:00