Bitcoin News Today: American Bitcoin Buys $314M in Bitmain ASICs to Boost Capacity by 14.02 EH/s

American Bitcoin Corp, a Bitcoin mining company linked to the family of U.S. President Donald Trump, has ordered 16,299 Bitmain ASICs, valued at approximately $314 million, to expand its mining capacity by 14.02 exahashes per second (EH/s) [1]. The order also includes an option to purchase up to 17,280 additional units, providing a buffer against potential price increases due to looming U.S. tariffs on Chinese imports [1].

This procurement is part of a broader industry response to rising trade barriers. U.S. import duties on Chinese-made mining hardware, such as ASICs, threaten to increase operational costs for American miners. Bitmain, which dominates the global mining hardware market with over 82% share, is offering fixed-price contracts to help clients like American Bitcoin hedge against these risks [1]. The company is also preparing to establish its first U.S. ASIC production facility by the end of 2025, with potential locations in Florida or Texas [1].

The move reflects a strategic shift toward reshoring manufacturing, driven in part by Trump-backed policies. However, the approach has drawn mixed reactions. While some view it as a step toward strengthening domestic supply chains, others warn that higher costs could diminish the competitiveness of U.S. miners and lead to surplus inventory [1]. Jaran Mellerud, a representative from Hashlabs, has expressed concerns that increased costs may ultimately drive operations abroad, undermining the intended benefits of the policy [1].

The Bitcoin mining hardware market remains highly concentrated, with over 99% of production controlled by three Chinese firms: Bitmain, MicroBT, and Canaan [1]. This dominance highlights the ongoing reliance on Chinese manufacturers, even as the U.S. seeks to localize production. American Bitcoin’s large-scale procurement of Bitmain equipment underscores the challenges of transitioning to a more self-sufficient domestic supply chain.

As U.S. trade policies continue to evolve, the cryptocurrency industry faces a period of strategic adjustment. Companies are navigating complex regulatory and geopolitical dynamics, with significant financial commitments being made in anticipation of long-term market shifts. American Bitcoin’s purchase of Bitmain hardware is a clear example of how firms are preparing for a more protectionist trade environment while attempting to maintain operational stability [1].

Source: [1] Trump-Linked Bitcoin Miner Buys $314M in Rigs Ahead of ... (https://coindoo.com/trump-linked-bitcoin-miner-buys-314m-in-rigs-ahead-of-tariff-shift/)