U.S. Bitcoin miners face rising costs from import tariffs and competition from ETFs, adding financial strain - IcoHolder.

Bitcoin miners in the United States are grappling with a double-edged sword: escalating equipment costs due to steep import tariffs and increased competition from alternative investment products like exchange-traded funds (ETFs). A new report from Bitwise highlights these challenges, warning that the industry is under significant financial strain.

American mining firms, which account for an estimated 40% of the global hashrate, are facing import levies ranging from 24% to 46% on mining equipment sourced from countries like Vietnam, Thailand, and Malaysia. These tariffs come at a time when the hashprice, a key profitability metric for miners, has hit all-time lows, exacerbating the financial pressure.

Adding to the burden is a shift in investor sentiment. ETFs and corporate treasuries, such as Strategy and Metaplanet, are now capturing significant investor interest, offering low-risk exposure to Bitcoin price fluctuations without the operational risks of mining. This has crowded out miners, who typically need to secure funding for heavy capital expenditures, navigate regulatory uncertainty, and endure long waiting periods before realizing any returns on their investments.

In response to these pressures, some mining firms are adapting. Bitmain-backed miner Bitfufu is exploring new markets, including Ethiopia, while Bitdeer is focusing on Norway and Bhutan. U.S.-listed miners like Riot and CleanSpark have attempted to mitigate the impact of tariffs by accelerating shipments of equipment before the deadlines. However, despite these efforts, the outlook for miners remains challenging, with Bitwise concluding that the industry is bracing for more difficult times ahead.