American Bitcoin (ABTC), backed by members of Donald Trump’s family, has finalized a deal to buy 16,299 Antminer U3S21EXPH units from Bitmain.
ABTC Acquired Mining Rigs in Bulk from a Chinese Firm
The purchase is valued at around $314 million. It will provide about 14.02 exahashes per second (EH/s) of computing power. According to TheMinderMag, this acquisition moves the company closer to its goal of reaching 25 EH/s.
The agreement with Bitmain, a Chinese company and the world’s largest Bitcoin mining hardware manufacturer, explicitly excludes potential price increases from new US trade tariffs.
American Bitcoin financed the purchase by pledging 2,234 BTC and using a $46 million deposit already paid. ABTC is a majority-owned subsidiary of Hut 8, and the purchase followed Hut 8 energizing its Vega site in Texas, the main facility for ABTC’s new fleet.
Tariff War’s Impact on US Crypto Mining
The Bitcoin mining industry is grappling with the effects of the Trump administration’s trade tariffs. These tariffs create a financial burden on miners, who rely on imported hardware. Import duties on machines from China can be as high as 57.6%. This has prompted major hardware manufacturers to rethink their strategies.
Bitmain, which has an estimated 82% share of the global mining hardware market, has reacted to the tariff pressures. It plans to open its first ASIC production facility in the US by the end of 2025 and establish a headquarters in Florida or Texas.
The shift toward production in the US is a direct result of the tariffs. These policies have made the US one of the least competitive places to import mining equipment.
Critics Warn of Damaging Consequences
Critics are warning that the administration’s new tariff policies could backfire. The increased costs from these tariffs may depress demand from American miners, potentially driving mining operations to other countries. Ultimately, this would undermine the government’s goal of making the US a leader in the crypto industry.
As machine prices rise in the US, they could paradoxically drop in the rest of the world
With lower demand from US miners, manufacturers will have excess stock. To offload it, they’ll likely lower prices to attract buyers in other regions
— Jaran Mellerud (@jmellerud) April 8, 2025
Jaran Mellerud, CEO of Hashlabs, offered his perspective on the situation.
“The most obvious impact of these tariffs? A significant price hike for mining machines in the US,” he said.
Mellerud added that importing machines to the US will now cost at least 24% more than in tariff-free countries like Finland.
“As machine prices rise in the US, they could paradoxically drop in the rest of the world. With lower demand from US miners, manufacturers will have excess stock. To offload it, they’ll likely lower prices to attract buyers in other regions.”
The post Trump-Backed American Bitcoin Secures $314M Bitmain Deal appeared first on BeInCrypto.
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Sangho Hwang
https://beincrypto.com/trump-backed-american-bitcoin-secures-314m-bitmain-deal/
2025-08-15 13:35:00
