Even major Chinese manufacturers are starting to relocate production to the United States. This unexpected development is changing the calculus of Bitcoin mining. Currently, Bitmain, Canaan, and MicroBT produce more than 90% of the mining hardware supplied to the Bitcoin ecosystem. These same companies are now establishing battery manufacturing plants here in the U.S. This lobbying strategy is designed to preempt the return of those tariffs enacted during the Trump administration. It aims to lower geopolitical frictions and address the national security issues that U.S. officials have pointed out.

This political shift is meant to antration of their access to the U.S. Additionally, it is a macro story about the Bitcoin mining industry’s own large-scale realignment, with North America stepping into the spotlight. The move includes some fundamental operational changes, showing a clear, long-term commitment to the U.S. market. The global Bitcoin mining hardware market is expected to hit $12 billion by 2028. This decision positions these companies to capitalize on the booming demand and complex geopolitical landscape to meet the increasing demand for clean fuels.

Strategic Shift to American Soil

Beijing-based Bitmain is well known for its Antminer product chain. It certainly didn’t hurt that it has long controlled the entire Bitcoin mining hardware industry. Now, in concert with partners Canaan and MicroBT, the company is moving that core, critical technology-making work to American soil. This action shields them from the punitive tariffs imposed by the Trump administration. Those tariffs increased the cost of importing any hardware into the U.S. by about 25%.

Canaan as of late last month completed a high-profile relocation of its headquarters to Singapore. By late 2024, they had started machine assembly in the U.S., then pilot production moved into gear in early 2025. The company realized that no more than 40% of its 2024 revenue would be generated by its U.S. operations. This further attests to the burgeoning importance of the American market. These companies can offer more competitive pricing by having a local manufacturing base. Besides getting a hand on assemblies, this action supports their goal of minimizing lead times for U.S. customers.

A lot goes into the decision to make in the U.S. It helps dissipate geopolitical tensions. The U.S.–China relationship has been under significant stress. Having a manufacturing base located entirely within the U.S. provides insurance against future trade wars, political tides, and other pressures. This development is particularly noteworthy given that Bitmain’s AI subsidiary, Sophgo, was just recently added to the U.S. Entity List. This placement limits its availability to U.S. technology.

Security Concerns and Market Influence

The US is becoming increasingly over-reliant on Chinese-built Bitcoin mining hardware. This continuing trend has fueled nationalistic fervor for protecting American firms and officials from foreign acquisition on national security grounds. These worries largely focus on the possibility of back door vulnerabilities in hardware which can be exploited for nefarious ends. Considering that there are hundreds of thousands of such machines tied to the U.S. electrical grid, the impacts go beyond just economics.

"Hundreds of thousands of these rigs are now connected to the U.S. electrical grid. That’s not just an economic issue. It’s a potential national security concern." - Sanjay Gupta

Sanjay Gupta, Chief Strategy Officer at Auradine, has been an adamant critic of the dangers posed by US overreliance on Chinese-built machines. Auradine, which is backed by Marathon Digital, is currently lobbying for tougher restrictions on the import of Chinese hardware. Marathon Digital, one of the largest and highest profile bitcoin mining companies in the U.S. Other firms are Riot Platforms, CleanSpark and Core Scientific.

"Bitcoin’s decentralization is only as strong as its hardware diversity. And right now, it’s not very decentralized." - John Deaton

It’s a dangerous situation when only a few small key players can dominate the hardware environment. This reality imperils the stated overall decentralization of the Bitcoin network. If one nation-state is in control of enough mining hardware, that would be a very dangerous thing. This concentration poses a vulnerable point that can be exploited by others.

North America's Growing Footprint

North America is quickly becoming a critical player in the global Bitcoin mining activity. In fact, over 30% of global Bitcoin mining now takes place in North America. This boom is being pushed by cheap electricity, friendly regulatory environments, and a massive investment in renewable energy. The floodgates have opened even wider with the dumping of manufacturing by other second-tier players like Bitmain, Canaan, and MicroBT.

The move serves primarily as a reminder that the change in manufacturing is part of a larger restructuring of the crypto mining supply chain. Firms are reacting by diversifying their operations to minimize risks and expanding into core growth markets.

"The U.S.–China trade war is no longer a temporary tension. It’s reshaping the crypto mining supply chain in a way that will permanently shift production and influence." - Guang Yang

This realignment will make a lasting difference for the Bitcoin mining industry longterm. It could dupe us into thinking we don’t need competition, innovation and decentralization.