Bitcoin Miners in U.S. Facing Crisis as Trump’s 36% Tariffs Could Destroy Industry

After China cracked down on cryptocurrency in 2021, many Bitcoin miners turned to the U.S. to continue their operations. The country’s cheap energy and favorable market conditions helped the industry flourish, with the U.S. quickly becoming the world leader in Bitcoin mining. For a time, things looked great, especially with President Trump, who had shown support for the crypto industry. But in April 2025, a new set of tariffs threatened to disrupt everything.

Tariffs Could Push U.S. Miners Over the Edge

While the U.S. became a Bitcoin mining powerhouse, many miners still relied on machines imported from Southeast Asia. Countries like Thailand, Malaysia, and Indonesia have been the main suppliers of mining equipment. However, Trump’s latest tariff policy targets these countries, imposing fees between 24% and 36% on mining machines. Although these tariffs were initially set to begin in April, they’ve been delayed by 90 days. But the relief might be short-lived, as the higher tariffs are expected to kick in by July.

Higher Costs Could Destroy Profits

Luxor Technology, a major player in the mining machine market, imports many of its machines from Thailand. Ethan Vera, the company’s COO, explained that the 36% tariff would hit their bottom line hard. The average cost of a top-of-the-line mining machine is already between $4,000 and $5,000, and adding up to 36% to that price could push profits too low to justify the investment.

Vera put it simply: "Those machines are never going to make back their cost with a 36% tariff on them. The margins are just too tight."

Rising Costs Are a Growing Concern for U.S. Miners

The majority of Bitcoin mining in the U.S. takes place in states like Georgia, Texas, and New York, where energy costs are low. But for many miners, the biggest expense is updating equipment and keeping operations running. Marathon Digital, one of the largest mining companies in the U.S., owns around 400,000 machines. Last year, they mined nearly 9,500 Bitcoins, worth over $796 million at current prices. But if tariffs increase the price of their mining machines, they may struggle to stay profitable.

Without affordable equipment, the whole system starts to fall apart. Vera worries that miners could end up unable to recover their investments in these machines if tariffs make the costs too high.

Miners Considering Moving Elsewhere

Some Bitcoin miners are already exploring the possibility of moving their operations outside of the U.S. Taras Kulyk, CEO of Synteq Digital, a distributor for Bitmain mining machines, shared that several of his clients have asked him to find mining sites in other countries.

"If policies keep changing unpredictably, companies will be forced to move," Kulyk said. "You need stable policies to attract billions in investment."

But not everyone is ready to leave. Compass Mining, another large player in the industry, still plans to operate in the U.S. However, the company is waiting for clarity on the tariff issue before making further moves. Vishnu Mackenchery, global logistics manager at Compass Mining, said they want to keep expanding within the U.S., but that’s not possible unless the tariff situation gets resolved soon.

“We want to continue building here,” Mackenchery said. “But we need clarity on the tariffs to move forward.”

What’s at Stake for U.S. Bitcoin Miners?

The clock is ticking for Bitcoin miners across the U.S. As the new tariffs loom, many are feeling the weight of what’s coming next. While the 90-day pause offers some breathing room, it’s clear that the industry is in limbo. If the tariffs go into full effect by July, miners will face a stark reality: higher costs that could force some to rethink their entire business strategy.

For now, companies are looking at their options. Some are considering shifting operations to countries with fewer restrictions, while others are weighing the impact of these tariffs on their long-term viability in the U.S. The next few months will be critical, and the direction the industry takes could determine whether the U.S. remains a dominant player in global Bitcoin mining or falls behind.

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