American Bitcoin, a Bitcoin mining company supported by members of former U.S. President Donald Trump's family, has recently purchased a significant amount of mining hardware from Bitmain. The company exercised an option to acquire 16,299 Antminer U3S21EXPH units from Bitmain, with the potential to reach up to 17,280 ASICs (application-specific integrated circuits), for approximately $314 million. These units are capable of a combined computing power of 14.02 exahashes per second (EH/s).

This deal comes amidst ongoing trade tensions and tariffs, implemented by the Trump administration, impacting Chinese-manufactured goods, including Bitcoin mining hardware. The agreement between American Bitcoin and Bitmain notably excludes any potential price increases stemming from these tariffs and import duties.

In response to the tariff pressures, Bitmain has announced plans to open its first ASIC production facility in the United States by the end of 2025. The company is also considering establishing a headquarters in either Florida or Texas. This move signifies a broader trend among mining hardware manufacturers to relocate operations to the U.S. to avoid import taxes. Bitmain is currently the largest mining hardware manufacturer globally, holding approximately 82% of the total market share.

Trade tariffs and macroeconomic pressures have created complexities within the Bitcoin mining supply chain, compelling miners and hardware producers to adapt their financial strategies. The Trump administration's use of trade tariffs aimed to encourage manufacturing in the U.S. has received mixed feedback, with some critics suggesting potential long-term inflationary effects.

Bitmain's decision to establish a U.S. facility aligns with the "Made in America" policies, intending to decrease delivery delays, mitigate U.S. tariff risks, and address geopolitical supply chain vulnerabilities. The U.S. facility is expected to begin production by early 2026 and create over 250 jobs in manufacturing and maintenance. This expansion could potentially enhance domestic Bitcoin mining capacity, strengthen supply chain resilience, and reduce dependence on international logistics. However, its success will depend on factors such as energy costs, workforce availability, and evolving regulatory frameworks.

Bitcoin, launched in 2009, operates on a peer-to-peer network for verifying transactions, making it borderless, decentralized, and transparent. New Bitcoins are mined through a proof-of-work system, where computers validate new blocks of transactions. The total number of Bitcoins is capped at 21 million, with over 19 million already mined as of 2024.