US bitcoin miners disrupted by chinese supplier under scrutiny

Crypto miners in the US are experiencing delays receiving deliveries of new equipment, threatening their competitiveness and profit margins, as the Chinese juggernaut that supplies the bulk of their machinery comes under scrutiny amid a trade war.

Recent shipments of machines made by Beijing-based Bitmain Technologies to US clients have been delayed due to heightened Customs and Border Protection scrutiny, according to half a dozen industry executives. The delays coincide with the US Commerce Department’s blacklisting of Bitmain’s artificial-intelligence affiliate Xiamen Sophgo Technologies in January, when it accused the firm of “acting at the behest of Beijing to further the PRC’s goals of indigenous advanced chip production.”

It’s a situation that brings into conflict two of US president Donald Trump’s goals: gaining the upper hand on China in trade, and nurturing homegrown crypto miners to ensure Bitcoin is “Made in the USA.”

Bitmain, which claims a 90 percent share of the market for specialized computers used to mine Bitcoin, is already subject to tariffs imposed by Trump in 2018. The Republican announced an additional 10 percent levy on Chinese imports on Feb. 1.