Bitcoin Mining Stocks Decline Amid Rising Tariff Concerns
The cryptocurrency mining sector took a hit on Thursday as investors assessed the impact of newly announced U.S. tariffs on mining equipment imports. With much of the bitcoin mining supply chain rooted in Asia, American-based operations are expected to face rising costs as they bring essential machinery onshore.
Tariffs on Mining Equipment Add Pressure
One of the biggest players in the industry, Beijing-based Bitmain Technologies, controls approximately 90% of the global bitcoin mining hardware market. The company had previously relocated a significant portion of its production to Indonesia, Malaysia, and Thailand to navigate trade restrictions. However, under new tariff measures announced on Wednesday, imports from these countries into the U.S. will now face levies ranging from 24% to 37%.
In response to growing trade tensions, Bitmain disclosed plans last year to establish a production line in the U.S. in an apparent effort to mitigate tariff exposure. Despite these efforts, the broader mining sector continues to grapple with supply chain disruptions that have plagued the industry for months. Mining rigs, which were stuck at U.S. ports due to logistical bottlenecks, are only now beginning to move through entry points.
Bitcoin Mining Stocks React to Uncertainty
As the market digested the implications of the tariff announcement, bitcoin mining stocks experienced significant declines. Marathon Digital Holdings saw its shares tumble over 8% during mid-session trading on Thursday. Riot Platforms and Core Scientific also faced downturns, with losses of approximately 7% and 10%, respectively.
Challenges for U.S.-Based Bitcoin Mining
The tariff imposition complicates former President Donald Trump’s recent campaign rhetoric, in which he expressed ambitions to establish the U.S. as a central hub for bitcoin mining. However, with higher import costs and ongoing supply chain struggles, the reality of a "Made in America" bitcoin mining industry appears increasingly difficult to achieve.