Bitmain, Canaan and MicroBT which collectively produce most of the worlds Bitcoin mining application-specific integrated circuits, or ASICs are bringing production to the US, according to a Wednesday report by Reuters.The shift comes in response to hefty reciprocal tariffs imposed on China by US President Donald Trump.
Tariffs currently stand at 25% on products imported from China, after previously exceeding 100%.An April study by the University of Cambridge shows that Bitmain is responsible for 82% of Bitcoin (BTC) ASIC production, MicroBT for 15%, and Canaan about 2%, giving the three companies a combined 99% share of the global market.Mining hardware distribution by manufacturer chart.
Source: Cambridge Digital Mining Industry ReportThe digital mining hardware market exhibits an oligopolistic structure, with the top three manufacturers Bitmain, MicroBT, and Canaan commanding over 99% market share, the study reads.Related: Trump tariffs squeeze already struggling Bitcoin miners Braiins execWith Bitcoin being a global network, this is not the first time geopolitics has played a role in mining the worlds first cryptocurrency.
Hashlabs Mining CEO Jaran Mellerud stated in early April that the Trump administrations sweeping tariffs could lead to a collapse in US demand for Bitcoin mining rigs.According to Mellerud, the tariffs would benefit mining operations outside the US, as manufacturers would look to sell their surplus inventory abroad at a lower cost.
Still, with a booming US Bitcoin industry, these companies have opted to enter the country as a way to mitigate the economic impact of the tariffs.It remains to be seen whether US-based production will be able to produce Bitcoin mining ASICs at a price comparable to those made in China.Magazine: China threatened by US stablecoins, G7 urged to tackle Lazarus Group: Asia Express