American Bitcoin Corp, a Bitcoin mining firm backed by Donald Trump's family, has ordered 16,299 ASIC units from Bitmain for approximately $314 million.
American Bitcoin Corp's Equipment Order
American Bitcoin Corp has placed an order for 16,299 application-specific integrated circuits (ASICs) from Bitmain, which will enhance the company’s computing power by 14.02 exahashes per second. This purchase is part of an option for up to 17,280 machines, highlighting the firm’s strategy to expand its market share.
Impact of Tariffs on Manufacturers
With the rising tariffs on Chinese imports, including ASICs, many hardware manufacturers are rethinking their strategies. According to a Cambridge University report, over 99% of Bitcoin mining machines are produced by just three Chinese companies: Bitmain, MicroBT, and Canaan, who are now considering relocating some of their production to the U.S.
Future of ASIC Production in the U.S.
In response to the trade climate, Bitmain announced plans in July to establish its first U.S.-based ASIC production facility by the end of the year. The company is also exploring new headquarters in either Florida or Texas. Currently, Bitmain holds more than 82% of the global market, maintaining its status as the largest mining hardware manufacturer.
The decisions made by American Bitcoin Corp and other companies to relocate production to the U.S. may help mitigate global supply chain risks and maintain equipment stability, but also raise concerns regarding price increases and changes in market demand.
