Bitcoin Mining Supplier Auradine Sees Potential in Trump-era Policies

Recent trade tensions may provide an opportunity for U.S. hardware manufacturers to boost domestic Bitcoin mining, according to an American Bitcoin mining supplier.

US President Donald Trump’s trade war with China and his efforts to boost domestic Bitcoin mining could benefit US mining rig manufacturers, which currently hold only a small share of the market compared to their Chinese counterparts.

Although the United States accounts for over 40% of the global Bitcoin network's hashrate, it still heavily relies on China-made mining rigs. China-based Bitmain reportedly holds up to 90% of the market share in Bitcoin mining hardware production.

“Trump’s ongoing focus on supporting the US Bitcoin mining industry underscores the critical need to reduce reliance on foreign technology,” said Sanjay Gupta, chief strategy officer at Auradine, in a recent interview.

Last year, US Bitcoin companies faced a significant supply chain issue, with thousands of mining rigs held at US ports by Customs and Border Protection. One affected company believed the delay was due to a misunderstanding, with the rigs mistakenly identified as illegal Chinese radio frequency devices. It took months before the equipment was released.

Gupta highlighted that the ongoing US-China trade tensions have further disrupted the flow of foreign Bitcoin miners.

“These trade tensions have exacerbated supply chain issues, leading to delays and uncertainties in hardware shipments,” Gupta remarked.

While the US has already been competing with China for leadership in high-end chip manufacturing, the trade disputes have only intensified these challenges for US-based cryptocurrency miners, he noted.

Bitmain, based in China, is said to dominate the Bitcoin mining hardware market. The company expanded its production operations into the US last December to enhance supply chain efficiency.

Gupta also pointed out that his company is well-positioned in light of Trump’s push for more domestic manufacturing. The anticipated “significant increase in demand” for electricity will put considerable strain on the power grid, making it even more crucial for Bitcoin miners to operate off-grid.

Auradine recently unveiled its Teraflux AH3880 hydro-cooled Bitcoin miner, entering into competition with established players such as Bitmain, MicroBT, and Canaan.

When asked if an increase in Bitcoin mining activity in the US could impact Bitcoin decentralization, Gupta responded that enhancing the security of the Bitcoin network with more energy-efficient solutions in the US would be a "net positive" for Bitcoin. However, he also acknowledged that risks could arise if the growth surpasses technological advancements in sustainability and decentralization.

According to the Hashrate Index, over 95% of the network’s hash power currently comes from the US and China alone.