As a result of the evolving political landscape, US-based miners are seeking alternatives to Bitmain.
Leading Application-Specific Integrated Circuit (ASIC) chip manufacturer Bitmain has been the undisputed leader in the Bitcoin mining industry, commanding 90% of the market for specialized mining hardware. However, the potential return of Donald Trump to the White House is putting pressure on Bitmain’s supremacy, according to Bloomberg.
Notably, Trump is a known China hawk. In a July interview, he vowed to make the US a leader in the crypto world, as he believes underestimating the sector would give China an early-mover advantage. During a recent Bitcoin conference, Trump stated that he wants to see Bitcoin “mined, minted, and made” in the United States.
Trump’s attitude is gaining traction among emerging competitors who view it as an opportunity to challenge Bitmain’s dominance. Bitcoin miner manufacturers like California-based Auradine are positioning themselves as viable alternatives.
As a result of the evolving political landscape, US-based miners are seeking alternatives to Bitmain. For instance, renowned bitcoin mining company Core Scientific recently placed an order with a unit of Jack Dorsey’s Block Inc, breaking its traditional reliance on Bitmain despite the latter being one of its largest investors.
Moreover, since June last year, Riot Blockchain, which earlier used to be a regular customer of Bitmain, has started placing orders with another Chinese manufacturer, MicroBT. Notably, these orders are with MicroBT’s “onshore manufacturing sites within the US,” giving Riot greater control of the supply chain.
In a Bloomberg interview, Rajiv Khemani, CEO of Auradine, noted the national security risks associated with a single Chinese company controlling the entire sector. Interestingly, Khemani’s firm counts Marathon Digital Holdings, one of Bitmain’s major clients, among its major shareholders. This signals that even Bitmain’s loyal customers are exploring new options.
Bitmain’s Ongoing Struggles
Bitcoin mining involves using specialized computers to solve complex mathematical puzzles, a process that requires immense computational power. The efficiency of these machines is important to the profitability of mining operations, and Bitmain’s Antminer rigs have long been considered the gold standard in the industry.
However, the geopolitical landscape is shifting rapidly. In response to US tariffs imposed in 2018, Bitmain began moving some of its production from China to Southeast Asia. But these efforts may not be enough to insulate the company from the growing scrutiny in the US, especially as the country intensifies its efforts to curb China’s access to advanced computing technology.
Meanwhile, the US still lacks a local alternative that matches Bitmain’s standards, leaving the majority of miners still using Bitmain’s rigs.
Since China imposed a sweeping ban on Bitcoin mining in 2021, the US has emerged as the global leader in Bitcoin mining activities. As of the latest data, the nation accounts for 35.4% of the global Bitcoin mining hash rate.
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