Bitcoin Mining Stocks Plunge Up To 10% On New Tariffs

Bitcoin mining stocks experienced a notable decline as investors carefully evaluated the potential impact of new tariffs on their operations. The tariff escalation, announced by the U.S. President, added significant pressure to global markets that were already on edge. This development led to a widespread sell-off in the crypto sector, as investors weighed the risk exposure associated with the new tariffs.

Among the affected mining companies, Marathon Digital Holdings, Riot Platforms, and Core Scientific saw their stock prices slip by approximately 8%, 7%, and 10% respectively. This broad-based decline underscored the extensive fallout from the tariff announcement, which sent shockwaves through various sectors of the market. The new tariffs, which include a baseline rate of 10% on all U.S. trading partners and additional duties on countries deemed "bad actors" on trade, are set to go into effect on April 5 and April 9. These measures are expected to raise the effective U.S. tariff rate to its highest level in over a century, impacting 185 countries in total.

With much of the bitcoin mining supply chain based in Asia, U.S.-based operations are going to face higher prices to get equipment onshore. Beijing-based Bitmain Technologies, the largest mining machine manufacturer, with a 90% market share, moved a large part of its production line to Indonesia, Malaysia, and Thailand years ago. Imports from these countries to the U.S. now come with levies of 24% to 37%, per the U.S. President’s announcement. Bitmain announced late last year it would open a “U.S. production line,” presumably to get ahead of tariffs.

The tariffs also come on the heels of widespread supply chain delays in the bitcoin mining space. Mining equipment has just started to move out of U.S. ports after being stuck for months at points of entry into the U.S. The new tariffs are expected to have a profound impact on various sectors, including technology and manufacturing. Companies that rely on global supply chains, such as those in the bitcoin mining industry, saw their stock prices fall significantly due to concerns about disruption to their operations.

President Trump, on the campaign trail, touted making the U.S. a hub for bitcoin mining. “Made in America bitcoin,” though, now may be a tall order. The tariff measures are part of a two-step approach unveiled by the U.S. President, which imposes a baseline rate of 10% on all U.S. trading partners but applies extra duties to countries considered "bad actors" on trade. The levies go into effect on April 5 and April 9, respectively. The new duties set the effective U.S. tariff rate at its highest level in over 100 years, impacting 185 countries in total.