Latest news with #EthanVera
Yahoo
5 days ago
- Business
- Yahoo
Trump's Asia tariffs takes a massive hit on Bitcoin miners
Trump's Asia tariffs takes a massive hit on Bitcoin miners originally appeared on TheStreet. As per the latest report by The Block, President Donald Trump's latest order on global tariffs seems to be becoming a pain in the neck for the Bitcoin mining community in the U.S. As the 90-day tariff pause deadline neared, Trump announced a slew of new global tariff rates on July 31. Among the worst-hit are the key centers of mining rig manufacturing in Southeast Asia. For those unfamiliar, crypto mining is the process of using high-tech hardware to validate and secure transactions on a blockchain network. Ethan Vera, the COO of a Bitcoin mining technology and services company, Luxor Technology, shared a document with The Block as per which the latest directive imposes 21.6% tariffs, including a 19% "reciprocal tariff," on imports of application-specific integrated circuits (ASICs) from Indonesia, Malaysia, and Thailand beginning Aug. are chips that are designed to execute a specific task extremely efficiently such as crypto mining, as opposed to general-purpose processors like central processing units (CPUs) or graphics processing units (GPUs). As per the report, U.S. tariffs on imports from China, a major hub of mining rig manufacturing, stand at a staggering 57.6%, which includes a 10% baseline reciprocal tariff and an additional country‑specific tariff of 20%. Anyway, the tariff pause deadline between the two countries is set to expire on Aug. 12, and there has been no breakthrough so far. While still lower than earlier rates, the current tariffs are significantly higher than the 2.6% tariffs on ASICs imported from the Southeast Asian countries before Trump's second term. However, Chinese machines even earlier used to face an additional 25% ad valorem said, "At 21.6% tariffs, the U.S. is now one of the least competitive jurisdictions to bring machines in, and miners are looking at Canada and other markets to expand too." Opportunity for domestic manufacturers However, the new trade conditions could also lead to a rise in the prices of U.S.-based used ASIC machines in the face of high tariffs on imported rigs, he explained. Though Luxor is excited about the production of mining rigs in the U.S., it warned fully onshoring the manufacturing could take years because most of the raw materials are still imported from Asia. The mining company expected the Trump administration to exempt the mining equipment from tariff hikes in order to encourage the domestic crypto industry. Trump's Asia tariffs takes a massive hit on Bitcoin miners first appeared on TheStreet on Aug 6, 2025 This story was originally reported by TheStreet on Aug 6, 2025, where it first appeared.
Yahoo
16-02-2025
- Business
- Yahoo
U.S. Bitcoin Miners Face Delays and Rising Costs as 2,000 Bitmain Mining Rigs Held Up in Customs
U.S. mining companies are facing significant delays in receiving Bitcoin mining equipment from Bitmain due to tighter scrutiny from U.S. Customs and Border Protection (CBP). These delays, which started in November 2024, have left shipments of application-specific integrated circuits (ASICs) stuck at U.S. ports. The increased inspections come as a result of growing trade tensions between the United States and China. Industry executives say U.S. Customs has been inspecting nearly all airlifted mining machines, adding to the logistical headaches for mining companies. Several mining operations have been directly affected. For example, New York-based Bit Digital has had 700 mining rigs delayed for weeks, while an Oklahoma-based mining firm has seen 2,000 rigs held up in customs. The problem has been compounded by a 10% tariff on Chinese imports that took effect on Feb. 1, raising the cost of these machines even further. According to Ethan Vera from Luxor Technology, shipments with Bitmain labels are among those specifically targeted for inspection. The delays come at a time when U.S. miners are already struggling due to the rising difficulty of mining Bitcoin. As of February 2025, the Bitcoin mining difficulty has increased to over 114 trillion, and the hash price has dropped to just $53 per petahash per second (PH/s). This has made it increasingly difficult for mining firms using older hardware like the Antminer S19 Pro, especially in regions with high electricity and hosting costs. Mining companies have had to adapt to these conditions, and some have diversified into sectors like AI data centers and even started holding Bitcoin as a corporate asset to offset lower mining profits. These challenges are also tied to wider geopolitical tensions. In January 2025, the U.S. Department of Commerce added Sophgo, an AI company linked to Bitmain, to its blacklist. The move has caused further disruption, especially as Bitmain's co-founder, Zhan Ketuan, has expanded into AI hardware, distancing the company from its traditional focus on mining equipment. The crackdown on Sophgo is part of broader efforts to limit Chinese access to American technology, especially in the semiconductor and AI sectors. Amid these pressures, Bitmain is still pushing ahead with plans for a new U.S. facility, though its exact location has not been disclosed. While the company has faced a series of challenges, including the U.S. Department of Commerce's blacklist, the delays and rising costs are expected to negatively impact the profitability of U.S. mining firms. Sign in to access your portfolio
