Trump-backed American Bitcoin orders 16K Bitmain ASICs amid ongoing trade war

American Bitcoin, a Bitcoin mining company backed by members of US President Donald Trump’s family, has flexed its financial muscles by snapping up a massive order of 16,299 Antminer U3S21EXPH units from Bitmain. This hardware haul, capable of churning out 14.02 exahashes per second (EH/s) of computing power, came with a hefty price tag of about $314 million.

The deal is a strategic move, sidestepping the potential price hikes from the Trump administration’s sweeping trade tariffs and import duties that are set to hit Bitmain’s China-manufactured mining hardware hard.

In a bold countermove to these tariff pressures, Bitmain has announced plans to open its first ASIC production facility in the US by the end of 2025, with a headquarters likely to land in either Florida or Texas.

The mining industry is feeling the squeeze from these tariffs and broader economic uncertainties, forcing miners and hardware producers alike to recalibrate their financial strategies in this shifting landscape.

The tariffs have sparked a potential exodus of mining hardware manufacturers to the US, aiming to dodge the import taxes now slapped on their products. With over 99% of all Bitcoin mining hardware produced by just three manufacturers—Bitmain, MicroBT, and Canaan—Bitmain dominates the scene with a staggering 82% market share.

The Trump administration’s strategy to reshore manufacturing through tariffs has divided opinions. Critics warn of long-term inflationary effects and potential backfires. Jaran Mellerud, CEO of Hashlabs, predicts a collapse in demand from US miners due to price hikes, leading to a surplus of inventory that could be exported at lower prices, undermining the US’s competitive edge in the mining sector.

This scenario could ironically drive mining operations back overseas, counteracting the administration’s goal of bringing the crypto industry home to the US.