Bitcoin Mining Giant Bitmain Faces 'Unprecedented Threat' as Trump Calls for US-Made BTC

For years, the Beijing-based company Bitmain Technologies has dominated the Bitcoin mining business, controlling an estimated 90% of the global market

Bitcoin mining company Bitmain Technologies is facing increasing pressure from rising political tensions and the prospect of a Donald Trump presidential comeback, which could pose an “unprecedented threat” to the Beijing-based firm.

According to Bloomberg, Bitmain currently controls an estimated 90% of the global market for the specialized computers used to power Bitcoin’s decentralized network.

However, Trump, a self-proclaimed crypto skeptic, has now shifted his stance and is calling for Bitcoin to be “mined, minted and made” in the United States.

In addition, the former president has hinted at creating a Bitcoin Reserve for the country, highlighting Bitmain’s dominance as a national security risk.

“There are several reasons why the former president might want to challenge a scenario where there is a single dominant Chinese mining company, including national security concerns,” Rajiv Khemani, CEO of California-based startup Auradine and a Bitmain competitor, told Bloomberg.

These concerns have been amplified by the shift of Bitcoin mining to the US following China’s crackdown, which has led to increased scrutiny of who is mining cryptocurrency on American soil and where the hardware is coming from.

In May, President Joe Biden ordered a Chinese mining company called MineOne to vacate and sell a property in Wyoming due to concerns over “foreign-sourced equipment” that could enable “surveillance and espionage activities.”

While the government has not presented public evidence of Bitmain’s rigs being used for espionage, the political climate has created an opening for Bitmain’s rivals to make significant progress.

For instance, Auradine, which counts Bitmain’s largest client, Marathon Digital Holdings, among its shareholders, raised $80 million in April and began shipping its first mining machines in late July.

Moreover, Texas-based Core Scientific, which is partly owned by Bitmain, announced an order from a unit of Jack Dorsey’s Block in July, breaking with tradition.

“That’s really important for us,” said CleanSpark CEO Zach Bradford, whose company recently acquired mining facilities that had been using Bitmain equipment. “Not just for the tariffs, but with the political situation being what it is.”

Despite the new challenges, Bitmain’s rigs are still considered the gold standard in the industry.

“If I’m a Bitcoin miner and I need to be efficient, Bitmain has the most efficient machines,” said Patricia Trompeter, CEO of crypto miner Sphere 3D Corp.

At press time, BTC is trading at $63,390, down 1.1% in the 24-hour time frame, having briefly hit the $65,000 mark on Sunday.

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