Producers Behind 99% of Bitcoin Mining Hardware Move to US

Bitmain, Canaan and MicroBT — who collectively produce nearly all of the world’s Bitcoin mining application-specific integrated circuits, or ASICs — are bringing production to the US, according to a Wednesday report by Reuters.

The shift comes in response to hefty reciprocal tariffs imposed on China by US President Donald Trump. Tariffs currently stand at 25% on products imported from China after previously exceeding 100%.

An April study by the University of Cambridge shows that Bitmain is responsible for 82% of Bitcoin (BTC) ASIC production, MicroBT for 15%, and Canaan about 2%, giving the three companies a combined 99% share of the global market.

“The digital mining hardware market exhibits an oligopolistic structure, with the top three manufacturers — Bitmain, MicroBT, and Canaan — commanding over 99% market share,“ the study reads.

Related: Trump tariffs squeeze already struggling Bitcoin miners — Braiins exec

Geopolitical impact on Bitcoin mining

With Bitcoin being a global network, this is not the first time that geopolitics has played a role in mining the world’s first cryptocurrency. Hashlabs Mining CEO Jaran Mellerud stated in early April that the Trump administration’s sweeping tariffs could lead to a collapse in US demand for Bitcoin mining rigs.

According to Mellerud, the tariffs would benefit mining operations outside the US, as manufacturers would look to sell their surplus inventory abroad at a lower cost. Still, with a booming US Bitcoin industry, apparently, these companies have instead opted to enter the country as a way to mitigate the economic impact of the tariffs.

Still, it remains to be seen whether US-based production will be able to produce Bitcoin mining ASICs at a price comparable to those made in China.

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