Key Points
- Increased scrutiny by U.S. customs is causing delays in Bitmain hardware shipments to American crypto miners.
- Bitmain’s co-founder, Zhan Ketuan, is facing pressure from U.S. authorities over his AI company, Sophgo.
U.S. crypto mining companies are experiencing shipment delays due to increased scrutiny by customs officials. These delays are affecting shipments from Bitmain, the leading provider of Bitcoin mining equipment.
Increased Customs Scrutiny
Bitmain, a Beijing-based company, dominates the specialized mining rig market. However, its deliveries to American clients are being slowed due to more frequent inspections by U.S. customs. This information was reported by industry executives who’ve observed the increased checks.
Nuo Xu, the founder of China Digital Mining Association, stated that U.S. Customs has been randomly inspecting almost all Bitcoin mining machines airlifted for the past three months.
Bit Digital, a New York-based company, reported that about 700 of its mining rigs were delayed by several weeks. Another operation in Oklahoma has around 2,000 rigs stuck in customs. Ethan Vera from Luxor Technology noted that shipments with Bitmain miner labels were among those targeted.
Trade Tensions and Tariffs
The situation could potentially worsen. A 10% tariff on Chinese imports came into effect on February 1, increasing the cost of new machines.
Bitmain is experiencing these supply chain issues at the same time its co-founder, Zhan Ketuan, is under pressure from U.S. authorities. His AI company, Sophgo, was blacklisted in January for allegedly aiding China’s chip industry and collaborating with Huawei.
Zhan’s venture into AI was met with resistance within Bitmain, with some executives expressing their displeasure about the shift away from mining hardware. The blacklisting of Sophgo also dealt a blow to the company, severing ties with key suppliers like Taiwan Semiconductor Manufacturing Company. Despite these challenges, Bitmain announced plans for a new U.S. facility in December, but has not disclosed the location.
