### Trump’s Plan to Manufacture Bitcoin in America Challenges Chinese Giant Bitmain’s Dominance
For years, a Chinese company has dominated one of the most profitable sectors in the cryptocurrency world. Growing political tensions and the potential return of Donald Trump to the White House pose an unprecedented threat to this dominance.
Bitmain Technologies Ltd., based in Beijing, holds a commanding 90% share of the global market for Bitcoin mining hardware. One of its major clients likens Bitmain’s influence to that of De Beers in its heyday, capable of dictating global prices by adjusting its production of mining machines.
However, with former President Trump advocating for the “mining, minting, and manufacturing” of Bitcoin in the U.S., emerging competitors see an opportunity to challenge Bitmain’s supremacy. Some argue that mining companies would benefit from diversifying their supply sources to hedge against geopolitical risks.
Trump’s rhetoric adds to the already deteriorating political climate for Bitmain in the U.S., where most Bitcoin mining occurs, amid growing concerns about the potential use of mining equipment for espionage.
Rajeev Khimani, CEO of California-based startup Auradine, a competitor of Bitmain, noted that Trump might be driven by national security concerns. In July, Bitcoin mining company Core Scientific Inc., based in Austin, Texas, broke with tradition by placing an order with a unit of Jack Dorsey’s Block Inc., despite Bitmain being a significant investor.
Bitcoin mining involves using specialized computers to solve complex mathematical puzzles, known as “miners,” through brute force. Each successful attempt helps support the blockchain and earns Bitcoin as a reward. These machines consume substantial amounts of energy, representing about 0.6% of global electricity consumption last year, according to the Cambridge Centre for Alternative Finance.
Economic considerations for Bitcoin mining largely revolve around the price of Bitcoin, access to cheap electricity, and the efficiency of mining equipment. To avoid tariff threats, Bitmain has shifted some production from China to Southeast Asia in recent years, following tariffs imposed by Trump in 2018 on electronics and other imports from China.
Public Concern
During a Senate hearing on banking, housing, and urban affairs, Senator Elizabeth Warren pressed Treasury official Paul Rosen about whether mining equipment could be used for espionage at the North Ring facility, located near F.E. Warren Air Force Base, which houses U.S. nuclear missiles. Rosen acknowledged concerns about advanced equipment being used for espionage near sensitive facilities.
MineOne agreed to sell its North Ring and Campstool mining facilities in Wyoming to CleanSpark, which describes itself as an “American Bitcoin mining company.” The agreement stipulates that all equipment must come from countries other than China or those under Office of Foreign Assets Control (OFAC) sanctions. If any equipment is found to be from China or sanctioned countries, Bitmain must replace it with machines from elsewhere, according to the contract.
CleanSpark CEO Zack Bradford emphasized the importance of avoiding tariffs and political risks. However, Bradford dismissed concerns about mining platforms being used for espionage, stating, “There is no memory or anything in these units that could be used for spying.”
What complicates the situation further is Trump’s potential return to power. During his first term, Trump was skeptical of cryptocurrencies but has since become a champion of the industry, receiving significant donations from prominent figures in the digital asset space. At a Bitcoin conference in Nashville on July 27, Trump urged for the “mining, minting, and manufacturing” of cryptocurrencies in the U.S., framing it as essential to countering China, despite China’s comprehensive ban on cryptocurrencies, including mining. Trump warned, “If we don’t do it, China will find out and get it – or someone else will.”
by/radwa sherif ✏️✏️📚