Three Chinese bitcoin mining hardware giants—Bitmain, Canaan, and MicroBT—are establishing manufacturing operations in the United States as a strategic response to escalating US-China trade tensions and rising national security concerns in the US.&nbsp;This transformation marks a significant realignment of the cryptocurrency mining supply chain, one that could reshape the future of global crypto infrastructure.Bitmain, Canaan, and MicroBT collectively control more than 90 per cent of the global bitcoin mining hardware market. According to Frost &amp; Sullivan, the combined market share by computing power sold of the three firms has reached 95.4 per cent as of December 2023.&nbsp;Despite China’s 2021 ban on domestic crypto activity, these manufacturers maintained global dominance by focusing on high-performance chips tailor-made for mining.Canaan has taken steps to distance itself from Chinese oversight, relocating its headquarters to Singapore and reporting that 40 per cent of its 2024 revenue came from the US. Canaan’s VP Leo Wang explained that the US move was about both avoiding tariffs and reducing customer costs, but heavy investment was being held back due to the unpredictability of trade policy.<h2>US tariffs reshape crypto supply chains</h2>The shift began after President Donald Trump, during his second term, imposed sweeping tariffs under his “Liberation Day” trade policy. The administration introduced a 30 per cent import duty on high-tech equipment, including bitcoin mining hardware, with an added 20 per cent on Chinese-origin imports.To remain competitive in the lucrative US market, where more than 30 per cent of global bitcoin mining occurs, Chinese manufacturers are now moving production to American soil.&nbsp;Bitmain, the largest mining hardware maker by sales, began US manufacturing in December 2024. Canaan followed in early 2025, launching pilot production lines in response to volatile tariff policies. MicroBT also announced a localisation strategy to avoid tariffs and get closer to its US customer base.Reuters reported that Guang Yang, chief technology officer at Conflux Network, said, “The US-China trade war is triggering structural, not superficial, changes in bitcoin’s supply chains. This is a long-term shift.”<h2>Security concerns persist despite US production</h2>While manufacturing in the US may mitigate tariff impacts, it hasn’t solved the problems as national security concerns persist. Reuters reported that Sanjay Gupta, chief strategy officer at US-based Auradine (a domestic rival backed by Marathon Digital or MARA), warned that Chinese-made mining rigs pose cybersecurity and infrastructure risks.“Hundreds of thousands of these rigs are now connected to the US electrical grid,” said Gupta. “It’s not just an economic dependency; it’s a strategic vulnerability.”Bitmain is already feeling the regulatory pinch. Its AI-focused subsidiary, Sophgo, was recently added to the US Entity List, effectively banning it from accessing US technologies. While Sophgo is not directly tied to bitcoin mining, the designation underscores the broader suspicion US authorities have toward Chinese tech firms.MicroBT and Canaan, meanwhile, are cautiously exploring US partnerships with data centres and energy providers while avoiding drawing undue regulatory attention.&nbsp;Industry insiders warn that further scrutiny could expand to mining hardware manufacturers as part of a broader decoupling in tech infrastructure between the two nations.<h2>A billion-dollar industry at a crossroads</h2>The bitcoin mining hardware sector is projected to grow to $12 billion by 2028, making the battle over supply chains a high-stakes commercial struggle. As mining becomes more energy-intensive and reliant on specialised chips, the question of who controls the upstream hardware becomes increasingly critical.This wave of Chinese firms relocating operations to the US is about more than tariffs; it represents a strategic realignment driven by economic, technological, and geopolitical forces.&nbsp;As America pushes to assert technological independence in critical sectors, Chinese hardware makers are repositioning themselves to stay relevant.The next few years will reveal whether the US can create a homegrown alternative to Chinese dominance or whether Chinese firms, through strategic localisation, will remain the major players in the backbone of bitcoin mining.&nbsp;(With inputs from agencies)

Bitmain, Canaan, and MicroBT are restructuring global supply chains as crypto mining meets geopolitics.

Three Chinese bitcoin mining hardware giants—Bitmain, Canaan, and MicroBT—are establishing manufacturing operations in the United States as a strategic response to escalating US-China trade tensions and rising national security concerns in the US. This transformation marks a significant realignment of the cryptocurrency mining supply chain, one that could reshape the future of global crypto infrastructure. Bitmain, Canaan, and MicroBT collectively control more than 90 per cent of the global bitcoin mining hardware market. According to Frost & Sullivan, the combined market share by computing power sold of the three firms has reached 95.4 per cent as of December 2023. Despite China’s 2021 ban on domestic crypto activity, these manufacturers maintained global dominance by focusing on high-performance chips tailor-made for mining. Canaan has taken steps to distance itself from Chinese oversight, relocating its headquarters to Singapore and reporting that 40 per cent of its 2024 revenue came from the US. Canaan’s VP Leo Wang explained that the US move was about both avoiding tariffs and reducing customer costs, but heavy investment was being held back due to the unpredictability of trade policy. US tariffs reshape crypto supply chains The shift began after President Donald Trump, during his second term, imposed sweeping tariffs under his “Liberation Day” trade policy. The administration introduced a 30 per cent import duty on high-tech equipment, including bitcoin mining hardware, with an added 20 per cent on Chinese-origin imports. To remain competitive in the lucrative US market, where more than 30 per cent of global bitcoin mining occurs, Chinese manufacturers are now moving production to American soil. Bitmain, the largest mining hardware maker by sales, began US manufacturing in December 2024. Canaan followed in early 2025, launching pilot production lines in response to volatile tariff policies. MicroBT also announced a localisation strategy to avoid tariffs and get closer to its US customer base. Reuters reported that Guang Yang, chief technology officer at Conflux Network, said, “The US-China trade war is triggering structural, not superficial, changes in bitcoin’s supply chains. This is a long-term shift.” Security concerns persist despite US production While manufacturing in the US may mitigate tariff impacts, it hasn’t solved the problems as national security concerns persist. Reuters reported that Sanjay Gupta, chief strategy officer at US-based Auradine (a domestic rival backed by Marathon Digital or MARA), warned that Chinese-made mining rigs pose cybersecurity and infrastructure risks. “Hundreds of thousands of these rigs are now connected to the US electrical grid,” said Gupta. “It’s not just an economic dependency; it’s a strategic vulnerability.” Bitmain is already feeling the regulatory pinch. Its AI-focused subsidiary, Sophgo, was recently added to the US Entity List, effectively banning it from accessing US technologies. While Sophgo is not directly tied to bitcoin mining, the designation underscores the broader suspicion US authorities have toward Chinese tech firms. MicroBT and Canaan, meanwhile, are cautiously exploring US partnerships with data centres and energy providers while avoiding drawing undue regulatory attention. Industry insiders warn that further scrutiny could expand to mining hardware manufacturers as part of a broader decoupling in tech infrastructure between the two nations. A billion-dollar industry at a crossroads The bitcoin mining hardware sector is projected to grow to $12 billion by 2028, making the battle over supply chains a high-stakes commercial struggle. As mining becomes more energy-intensive and reliant on specialised chips, the question of who controls the upstream hardware becomes increasingly critical. This wave of Chinese firms relocating operations to the US is about more than tariffs; it represents a strategic realignment driven by economic, technological, and geopolitical forces. As America pushes to assert technological independence in critical sectors, Chinese hardware makers are repositioning themselves to stay relevant. The next few years will reveal whether the US can create a homegrown alternative to Chinese dominance or whether Chinese firms, through strategic localisation, will remain the major players in the backbone of bitcoin mining. (With inputs from agencies)

Bitmain, Canaan, and MicroBT are restructuring global supply chains as crypto mining meets geopolitics

Chinese bitcoin mining giants shift to the US amid tariffs and security scrutiny

Amid the new legislation for crypto mining in Russia, local authorities have uncovered illegal crypto mining farms in the southern Republic of Dagestan. The regional prime minister urged law enforcement to increase their efforts to tackle unlawful mining operations as the region struggles with electricity consumption.

Russia's Dagestan Calls For Illegal Crypto Mining Crackdown Amid Power Issues

A former official of a Massachusetts town is facing charges for setting up a secret cryptocurrency mining operation in a remote crawl space at a school, police said on Friday (February 24). Nadeam Nahas, 39, was an assistant facilities director in Cohasset. He worked as a town official from January 2021 until his resignation in early 2022.

Nahas has been charged with fraudulent use of electricity and vandalising Cohasset High School.&nbsp;On Friday, Nahas pleaded not guilty in court, according to a report by the BBC.&nbsp;

Crypto mining is the process of validating cryptocurrency transactions and creating a new cryptocurrency. It consumes vast amounts of electricity.&nbsp;

On Wednesday, Chief William Quigley of the Cohasset Police Department said in a statement that police had responded to the school in December 2021 after the town's facilities director found electrical wires, temporary duct work, and numerous computers that seemed out of place while conducting a routine inspection (of the school).&nbsp;

Quigley said the town's IT director was contacted and determined that it was a cryptocurrency mining operation unlawfully hooked up to the school’s electrical system. The Coast Guard Investigative Service and the Department of Homeland Security assisted with safely removing and examining the equipment.

Following a three-month investigation, it was found the suspect was Nadeam Nahas, the report said.&nbsp;

According to court documents, the mining operation ran from April to December 2021 and cost Cohasset High School &nbsp;$17,500 in electricity. 
 
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A former official of a Massachusetts town is facing charges for setting up a secret cryptocurrency mining operation in a remote crawl space at a school, police said on Friday (February 24).

A former official of a Massachusetts town is facing charges for setting up a secret cryptocurrency mining operation in a remote crawl space at a school, police said on Friday (February 24). Nadeam Nahas, 39, was an assistant facilities director in Cohasset. He worked as a town official from January 2021 until his resignation in early 2022. Nahas has been charged with fraudulent use of electricity and vandalising Cohasset High School. On Friday, Nahas pleaded not guilty in court, according to a report by the BBC. Crypto mining is the process of validating cryptocurrency transactions and creating a new cryptocurrency. It consumes vast amounts of electricity. On Wednesday, Chief William Quigley of the Cohasset Police Department said in a statement that police had responded to the school in December 2021 after the town's facilities director found electrical wires, temporary duct work, and numerous computers that seemed out of place while conducting a routine inspection (of the school). Quigley said the town's IT director was contacted and determined that it was a cryptocurrency mining operation unlawfully hooked up to the school’s electrical system. The Coast Guard Investigative Service and the Department of Homeland Security assisted with safely removing and examining the equipment. Following a three-month investigation, it was found the suspect was Nadeam Nahas, the report said. According to court documents, the mining operation ran from April to December 2021 and cost Cohasset High School $17,500 in electricity. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US: Police discover crypto mining operation in school crawl space in Massachusetts

The plant was forced to reinvent itself after 30 years because the government stopped buying electricity during the pandemic due to surplus power supply in the Central American country, where the state has a monopoly on energy distribution.

Costa Rica: Hydroelectric power plant gets new lease of life from crypto mining

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