Bitcoin miners spend over $3M on flights to avoid tariff hit

Bitcoin (CRYPTO:BTC) miners in the United States are racing to minimise exposure to new tariffs proposed by the Trump administration, which are expected to increase the cost of importing essential mining equipment.

According to Blockspace Media, some firms paid between $2 million and $3.5 million for chartered flights ahead of the April 9 tariff implementation to fast-track deliveries of ASIC miners and supporting hardware from Southeast Asia.

Ethan Vera, COO of mining services firm Luxor, described the situation as chaotic.

“It’s a complete scramble,” Vera said during a podcast episode.

“Miners have not been very proactive… they’re operating in less than a week period here to make sure all shipments… are picked up and getting delivered.”

The urgency stems from a sweeping tariff plan initially proposed by the Trump administration that would have imposed levies on imports from more than 180 countries, including key ASIC manufacturing hubs Malaysia, Thailand, and Indonesia.

These countries faced potential tariffs of 24% to 36%.

However, the administration issued a 90-day pause on most of the proposed measures last Wednesday, softening the impact.

During this grace period, the U.S. has imposed a flat 10% tariff on imports from these nations, excluding China, which remains subject to higher duties.

The uncertainty around trade policy is still a concern for miners.

“Even at 10%, the tariffs are material enough that they will hamper efforts to deploy hashrate in the U.S.,” Vera noted.

The U.S. currently holds around 35% to 40% of global Bitcoin hashrate.

The tariffs are expected to slow the growth of that share.

Synteq Digital CEO Taras Kulyk noted that miners imported over $2.3 billion worth of ASICs into the U.S. in 2024, with $860 million brought in during Q1 alone.

Bitmain and MicroBT, which control over 90% of the ASIC market, previously shifted much of their manufacturing from China to avoid earlier tariffs, relocating to Southeast Asia.

MicroBT also opened a U.S. assembly plant in 2023, while Bitmain launched its U.S. line in January.

Still, both companies rely heavily on imported raw materials, which are also subject to duties.

“U.S. production will have a material discount” compared to imported equipment, Kulyk added, but tariffs on components like aluminum and control boards remain a barrier.

The mining industry now faces a critical three-month window to prepare for the possible reinstatement of harsher tariffs, with many questioning how long the current rate will hold.

At the time of reporting, the Bitcoin price was $80,847.86.