Bitcoin miners feel tariff sting
Bitcoin mining companies are feeling the tariff sting again today. MARA Holdings, Hut 8, Riot Platforms, and CleanSpark all sank double digits in early trading Friday, though they’ve since recovered some of those losses.
“The bitcoin mining industry depends exclusively on ASIC computer chips from China,” Alexander Blume, CEO of Two Prime Digital Assets, said. “Hikes on tariffs for these products will make production costs for miners higher and their businesses less profitable.”
As a result, these stocks may struggle to compete with their non-US peers, including Canadian firms HIVE and Bitfarms and UK-based Argo, Blume said.
But it’s not just about chips. As Bloomberg reported, while the largest bitcoin mining companies are in the US, the supply chain they rely on is in Asia. And tariffs on some of these countries are pretty steep: 46% on Vietnam, 37% on Thailand, and 24% on Malaysia.
Bitcoin mining software and services company Luxor Technology told Bloomberg it was rushing to “ship about 5,600 Bitcoin mining machines from Thailand to the US before tariffs imposed on the Southeast Asian country by President Donald Trump kick in.”
“Ideally we can charter a flight and get machines over — just trying to be as creative as possible to get these machines out,” Lauren Lin, head of hardware at Luxor, said.
As a result, these stocks may struggle to compete with their non-US peers, including Canadian firms HIVE and Bitfarms and UK-based Argo, Blume said.
But it’s not just about chips. As Bloomberg reported, while the largest bitcoin mining companies are in the US, the supply chain they rely on is in Asia. And tariffs on some of these countries are pretty steep: 46% on Vietnam, 37% on Thailand, and 24% on Malaysia.
Bitcoin mining software and services company Luxor Technology told Bloomberg it was rushing to “ship about 5,600 Bitcoin mining machines from Thailand to the US before tariffs imposed on the Southeast Asian country by President Donald Trump kick in.”
“Ideally we can charter a flight and get machines over — just trying to be as creative as possible to get these machines out,” Lauren Lin, head of hardware at Luxor, said.
