The article discusses the dual challenges faced by Bitcoin miners in the U.S.: escalating equipment tariffs due to import duties ranging from 24% to 46% and increased competition from financial instruments like ETFs. As a result of these factors, miners are experiencing a squeeze on profitability and funding. Some firms are adapting their strategies to navigate this adverse environment, while others continue to brace for tougher conditions ahead.
Bitcoin miners in the United States are currently navigating two significant challenges: increasing equipment costs from import tariffs and heightened competition from financial products such as exchange-traded funds (ETFs). A report by Bitwise highlights that American firms control approximately 40% of the global hashrate but are now facing tariffs ranging from 24% to 46% on equipment imported from countries like Vietnam, Thailand, and Malaysia. This situation arises as hashprice, which is crucial for assessing miner profitability, has reached historic lows.
Investor attitudes are also shifting, with a move towards ETFs and corporate treasuries, which are capturing market interest. Bitwise analysts André Dragosch and Ayush Tripathi indicate that American miners are now competing against these financial products for capital. Companies like Strategy and Metaplanet are able to accumulate Bitcoin through low-cost equity or convertible debt, providing investors with immediate exposure to price increases without the operational risks inherent in mining.
Some miners are adapting their strategies to cope with these pressures. For example, Bitfufu, supported by Bitmain, is exploring opportunities by relocating operations to Ethiopia. Similarly, Bitdeer is focusing on developments in Norway and Bhutan. U.S. miners such as Riot and CleanSpark responded to the initial tariff implications by expediting shipments before deadlines, but the industry outlook remains challenging, with miners preparing for ongoing difficulties, concludes the Bitwise report.
