Bitmain’s Expansion into the U.S.
Bitmain, a prominent Bitcoin mining rig producer based in China, is strategizing to launch its inaugural factory in the United States. Reports from Bloomberg indicate that the company plans to also secure a new headquarters, with Texas or Florida as potential locations.
Employment and Production Plans
In its initial phase, Bitmain aims to employ approximately 250 individuals locally for tasks related to manufacturing and maintenance at the facility. Irene Gao, Bitmain’s global business head, has projected that the company will commence its preliminary production in early 2026, with full production capacity expected to be reached later that year.
Gao sees this move as a
“unique opportunity,”
particularly with the favorable pro-cryptocurrency policies being promoted under the Trump administration and a focus on American-made products. This strategic shift has been influenced by the current U.S. industrial policy landscape, recent tariffs, and China’s mining ban imposed in 2021.
Investment in Cryptocurrency
In a show of interest in the cryptocurrency sector, a venture connected to Trump recently secured $220 million aimed at acquiring Bitcoin and digital asset mining equipment.
Challenges and Opportunities
Despite higher labor costs in the U.S., Gao emphasized that establishing local production would enhance delivery speeds and facilitate repairs for American clients, making the business decision financially viable despite uncertainties regarding tariffs. Conversely, ongoing trade tensions and the Trump administration’s trade war have created challenges for Bitmain’s expansion plans in the U.S., resulting in delays of shipments from China due to increased Customs scrutiny.
Competitive Landscape
If Bitmain successfully establishes its presence in the U.S., it could join the ranks of other major publicly-traded mining companies such as Mara Holdings, Riot Platforms, and CleanSpark. Another major player in North America, Hut8, is also set to merge with Gryphon Digital Mining, forming a new American Bitcoin brand. Hut8 has invested in 31,145 Bitmain machines to enhance its mining capabilities.
Market Dynamics
Despite the security concerns associated with Chinese Bitcoin miners in the U.S. during the Biden administration, which culminated in the forced sale of land held by a Chinese-backed mining entity near a military base, the landscape for these companies continues to evolve. The University of Cambridge noted that leading manufacturers of Bitcoin mining hardware—including Bitmain, Canaan, and MicroBT—account for 99% of the global market.
Interestingly, a significant percentage of Bitcoin mining operations around the globe, about 65%, have roots in China. The exodus of miners from China to other nations, particularly the United States, has resulted in a notable increase in the U.S. share of the Bitcoin mining hashrate, skyrocketing from 4% in 2019 to an impressive 38% today.
