Bitcoin miners in the United States are under pressure from two major fronts: steep import tariffs on mining equipment and rising competition from financial products like exchange-traded funds (ETFs), according to a new report by crypto investment firm Bitwise.
The report, authored by Bitwise’s head of research André Dragosch and research analyst Ayush Tripathi, outlines the financial strain miners are experiencing as global dynamics shift. Notably, an estimated 40% of the global hashrate—an indicator of Bitcoin mining power—is now operated by American firms. But these companies are being hit with equipment import tariffs ranging from 24% to 46%, particularly on hardware coming from Vietnam, Thailand, and Malaysia.
These levies come at a time when mining profitability is already under severe pressure. The report highlights that hashprice—a key metric used to measure the value of mining—is “at all-time lows.”
At the same time, capital that once flowed into mining companies is now being redirected. With the rise of spot crypto ETFs and companies like Strategy and Metaplanet adding Bitcoin to their treasuries, investors are finding new ways to gain exposure to crypto without the high costs and risks associated with mining.
Bitcoin miners “now face intense competition on the capital front,” Dragosch and Tripathi write. “These firms can accumulate BTC using low-cost equity issuance or convertible debt, offering investors immediate exposure to price appreciation without the operational risks of mining. This crowds out miners, who must finance heavy upfront capital expenditures, navigate uncertain regulatory terrain, and wait months or even years for their investment to pay off.”
Some companies are already making strategic shifts to cope with these changes. Bitfufu, a Bitmain-backed mining firm, is exploring opportunities in Ethiopia, while Bitdeer has turned its attention to Norway and Bhutan. U.S.-listed miners Riot and CleanSpark managed to blunt the initial impact of tariffs by fast-tracking their equipment shipments before new deadlines took effect, Bitwise notes.
Still, despite these measures, the broader outlook remains challenging. According to Bitwise, American miners are clearly “bracing for more pain.”
