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United States Bitcoin became a global leader in mining After China’s 2021 rift on the Crypto industry.
With cheap electricity and strong capital markets, American mining firms quickly dominated, and the election of Pro-Crypto President Donald Trump initially promoted optimism for continuous development.
However, there are recent developments Put a shade on that speed,
US bitcoin mining faces risk on dependence on Southeast Asian devices
The center of the issue has the dependence of the US mining sector on imported equipment from Southeast Asia.
Countries like Thailand, Malaysia and Indonesia produce most of the mining machines used in America
These machines are now facing standing tariffs up to 36% under a new Trump Administration Trade Policy, although the implementation has been temporarily stopped for 90 days. Currently, a normal 10% tariff is effective.
For companies such as Luxor Technology, which imports machines from Thailand, the proposed tariff growth may be destructive.
Ethan Vera, COO of the company, Told Fortune An increase of 36% will severely damage their return to investment.
Vera warned, “Those machines are never going back to the capital if there is another 36%,” Vera warned. “Margine is very tight.”
Major mining operations in states such as Georgia, Texas and New York rely on continuous hardware upgrades, a procedure that represents an important part of operating expenses.
Marathon Digital, one of the largest American mining firms, owns around 400,000 machines and 9,430 bitcoins were mined last year – for more than $ 796 million at current prices.
Tariffs on top level machines, which can already squeeze the benefit at the cost of $ 4,000 and $ 5,000, at the braking point.
His tariff policy adversely affects the President Trump to ensure that all the remaining bitcoins are pledged to mined on the US earth.
An index tracking of publicly trading mining firms has fallen by 12% as Trump unveiled the tariff scheme on 2 April, reducing the S&P500, which is 8% below the same period.
Crypto miners triggled a crowd of tariff stagnation as a race against time
90 days stop A hurry of contingency plan has been motivated. Some companies are delaying contract with manufacturers, while others are running to import more and more machines before the July deadline.
Synteq Digital CEO, Taras Kulyk said that many major customers are already scouting international places for future deployment.
“I have already received three mandates to look for sites outside America,” he said.
Even if the tariff is eventually rolled back, Kulik said that the unexpectedness of Trump’s business policies is unstable for investors.
“You need a stable policy to attract the billions required for reconstruction of manufacturing,” he said.
Not all firms are ready to quit their American expansion plans.
Vishnu McKenchra of Compass Mining told Luck His company is committed to increasing its operations in the US, but warned that unresolved tariff questions are causing serious logistic obstacles.
“We want to continue construction in America here,” he said. “So to continue that path, we hope that a resolution comes soon about the tariff.”
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