American Bitcoin, supported by family members of former President Donald Trump, has made a deal with Bitmain to strengthen its position in the cryptocurrency mining market.
Deal with Bitmain
American Bitcoin has secured up to 17,280 ASIC devices from Bitmain, one of the world's leading crypto mining hardware manufacturers. Earlier, the company purchased 16,299 Antminer U3S21EXPH units with a combined power of 14.02 EH/s, valued at approximately $314 million.
Impact of Tariffs
The aim of the agreement is to shield American Bitcoin from potential price increases resulting from tariffs and import duties on China-made equipment. In anticipation of these tariffs, Bitmain announced plans to open its first ASIC production facility in the US by the end of the year.
Criticism of Trade Policy
Critics argue that tariffs could be inflationary and ultimately harm the domestic mining industry. Jaran Mellerud, CEO of Hashlabs, warned that higher equipment prices might crush demand from US miners.
The deal between American Bitcoin and Bitmain, alongside the implications of US trade policy, highlights significant changes in the cryptocurrency mining landscape and the need for companies to adapt to new conditions.
