Bitcoinist
2025-08-16 03:00:18

Bitcoin Miner Tied To Trump Spends $314 Million On Chinese Computer Chips

American Bitcoin Corp., a mining company linked to US President Donald Trump’s family, has completed one of the largest hardware purchases in the crypto sector this year. Reports have disclosed that the firm paid around $314 million for 16,290 Antminer U3S21EXPH units from Chinese mining giant Bitmain . Massive Purchase Ahead Of Tariffs The order locks in a huge amount of high-performance ASIC machines capable of producing about 14.02 exahashes per second in combined hashing power. This level of output could boost American Bitcoin’s share of global mining capacity. The company originally had an option for as many as 17,280 units but decided to move fast to avoid price hikes from US tariffs on Chinese-made mining gear. Industry trackers say orders of this scale have been rare for American miners in 2025. While the firm has not revealed where the rigs will be deployed, sources familiar with the matter said they plan to distribute them across multiple large sites to reduce operational risks. Political And Trade Pressures The deal came just before the Trump administration began enforcing tariffs on imported Chinese mining hardware. The policy covers a wide range of technology goods, including ASIC miners, and is aimed at pushing production back to the US. However, critics say these tariffs could raise operating costs for domestic miners. Jaran Mellerud, CEO of BTC mining firm Hashlabs, warned that higher costs could cut into profitability. He warned that steep price increases could raise mining costs in the US to a point where demand collapses, blaming regulators he viewed as ineffective. Bitmain Eyes US Expansion Bitmain, which controls about 80% of the global ASIC market according to a University of Cambridge study, is adjusting its operations in response to the tariffs. The company plans to open its first US-based ASIC production site in early 2026. By the end of this year, it also expects to set up a new headquarters in Texas or Florida. The aim is to make its products accessible to US customers at reasonable prices and escape import taxes by manufacturing locally. Industry experts opine that this action would prompt other industry leaders such as MicroBT and Canaan to explore the possibility of diverting some production capacity to North America. Although the complete implications of the tariffs on the mining supply chain are still uncertain, this recent acquisition indicates the depth of stakes for manufacturers and operators alike. For American Bitcoin, the $314 million order indicates faith in the profitability of the industry in spite of fluctuating Bitcoin prices and increased competition. For Bitmain, it’s an indication that being able to bend with political and economic gusts will be the ticket to maintaining its dominance of the US market. Featured image from Pexels, chart from TradingView

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