Crypto mining firms in the U.S. are facing delays in receiving Bitmain equipment. Increased customs scrutiny coupled with new tariffs complicates the situation.
Increased Scrutiny on Bitmain Shipments
Beijing-based Bitmain, a major supplier of specialized mining rigs, is facing heightened scrutiny from U.S. customs authorities. The increased attention amid trade tensions has led to shipment delays. According to Bloomberg, industry executives have observed more frequent inspections.
Shipment Delays
New York's Bit Digital reported delays on 700 of its rigs by a few weeks. In Oklahoma, 2,000 rigs are stuck due to customs procedures, according to a person familiar with the matter. Luxor Technology’s Ethan Vera noted that shipments labeled with 'Bitmain miner' are among those targeted. A new 10% tariff on Chinese imports initiated on February 1st adds to the cost of new machines, worsening the situation.
Context of Bitmain's Issues and Future Plans
Bitmain's supply chain difficulties come amid pressure on its co-founder, Zhan Ketuan, from U.S. authorities over his AI company, Sophgo. The firm was blacklisted in January for allegedly aiding China's chip industry and working with Huawei. Some Bitmain executives were unhappy with the shift in focus away from mining hardware. Despite these challenges, Bitmain announced plans for a new U.S. facility in December, though the location remains undisclosed.
Heightened scrutiny by U.S. customs and new tariffs have posed new challenges for crypto mining companies that rely on Bitmain equipment. More careful planning of logistics and additional expenses may be needed in the near future.
