Chinese Bitcoin Mining Firm Dominance Under Threat As US Push for “Made in USA” Mining

Bitcoin mining, a key part of the cryptocurrency world, is seeing major changes as only 1.19 million Bitcoins remain to be mined from the 21 million total supply, valued at around $74 billion. This growing scarcity is stirring geopolitical tensions, with Donald Trump pushing for more Bitcoin mining in the U.S. amid concerns that Chinese-made equipment could be used for spying.

Bitmain’s Dominance Under Pressure

For years, Bitmain Technologies Ltd., a Chinese-based company, has controlled about 90% of the market for Bitcoin mining computers. This dominance is so significant that it can influence global Bitcoin prices just by adjusting its production. However, the dominance of this Chinese company is being threatened by political shifts, particularly with the possibility of Donald Trump returning to the White House.

At the Bitcoin Conference 2024, former President Donald Trump called for Bitcoin mining to be “mined, minted, and made” in the U.S. His comments reflect a growing push to move Bitcoin mining away from Chinese control.

Concerns Over Chinese Equipment Spark U.S. Action

Following China’s ban on Bitcoin mining, more mining operations have moved to the U.S. This shift has raised concerns about the use of Chinese-made mining equipment. U.S. officials worry that this equipment could be used for surveillance and spying.

In May, President Biden ordered the Chinese company MineOne to sell its property in Wyoming. This decision was made because of fears that the equipment could be used for spying. This action is part of a larger effort to limit China’s role in important technologies.

Though there is no public evidence of spying, these concerns have led to tighter regulations and greater scrutiny of mining operations using foreign hardware.

The Challenges for Bitmain

Despite its past dominance, Bitmain is facing increasing challenges. The company has moved some of its production to Southeast Asia to avoid the impact of U.S. tariffs. However, these efforts might not be enough to protect its position as competitors begin to gain a stronger hold.

U.S. Companies Step Up

As political tensions rise, American companies are stepping up to challenge Bitmain’s dominance. For example, Auradine, a startup based in California, has recently entered the market with new mining machines. Auradine, which raised $80 million earlier this year, is now gaining attention from major investors. 

Similarly, Core Scientific Inc. in Texas has made significant orders for mining equipment, even though Bitmain is one of its largest investors.

The Future of Bitcoin Mining in the U.S.

As the U.S. moves to take greater control of Bitcoin mining, the industry is likely to undergo significant changes.

While Bitmain’s rigs are still seen as the top performers for efficiency and power, U.S. companies will need to innovate and produce competitive alternatives to meet the increasing demand for American-made mining hardware.

Also Read : What is hyperbitcoinization? How Can it Propel Bitcoin’s Value To $10 Million?

The race for Bitcoin dominance has just begun.