Bitmain Sets Sights on the US: A New Frontier for Bitcoin Mining

In a significant move, Bitmain, the Chinese manufacturer of Bitcoin mining rigs, is considering establishing its first US factory. This strategic decision could mark a new chapter in the company’s expansion plans, with Texas or Florida being the potential locations for its new headquarters. According to Bloomberg, Bitmain aims to recruit around 250 local employees for maintenance units at the manufacturing and location level, with production expected to commence in early 2026.

Why the US?

The US presents a unique opportunity for Bitmain, particularly with the current administration’s pro-crypto stance and “Made in USA” strategy. The company’s global managing director, Irene Gao, believes that local production will accelerate deliveries and repairs for US customers, despite higher labor costs. This move is also driven by the uncertainties surrounding tariffs and the impact of China’s mining ban in 2021 on the industry.

Challenges and Opportunities

Bitmain’s decision to set up shop in the US is not without its challenges. The company will need to navigate higher labor costs and potential uncertainties related to tariffs. However, the benefits of establishing a local presence, including faster delivery times and improved customer service, outweigh the costs. Additionally, the US industrial policy and the current trade war with China have disrupted Chinese supply chains, making it essential for companies like Bitmain to diversify their operations.

Joining the Ranks of US-Based Miners

Once established, Bitmain will join the ranks of publicly listed miners in the US, including Mara Holdings, Riot Platforms, and CleanSpark. Another North American Bitcoin mining giant, Hut 8, is also planning to merge with Gryphon Digital Mining under the American Bitcoin brand. This consolidation is expected to strengthen the US mining industry, with companies like Hut 8 investing heavily in Bitmain machines to improve their mining capacity.

A Shift in Global Mining Dynamics

The Chinese Bitcoin mining industry has undergone significant changes in recent years, with many companies pivoting to the US due to security concerns and regulatory pressures. During the Biden administration, Chinese Bitcoin miners have faced increased scrutiny, with some being forced to sell their assets due to national security concerns. According to a report by the University of Cambridge, the three largest manufacturers of Bitcoin mining hardware – Bitmain, Canaan, and MicroBT – produce 99% of the world’s BTC mining hardware, with 65% of global Bitcoin mining operations still originating from China.

However, with China’s former hash rates migrating to countries like Russia and the US, the global mining landscape is undergoing a significant shift. Batyr Hydyrov, CEO of crypto mining device provider Uminers, notes that China’s former hash rates have moved to the US, with the country’s share of global Bitcoin mining hash rates increasing from 4% in 2019 to 38%.