Wall Street Bitcoin miners' operations face significant disruptions as federal authorities halt imports of the newest Bitmain mining equipment at ports across the country. As Bitcoin's price approached $100,000, companies rushed to invest in new mining equipment to boost their production capacity. However, orders may have been delayed at ports.
U.S. Customs Blocks Latest Bitmain Mining Equipment
The U.S. Customs and Border Protection (CBP) has detained shipments of Bitmain's latest Antminer S21 and T21 series at multiple entry points, including major ports in San Francisco and Detroit, Blockspace has learned. The action comes at the apparent request of the Federal Communications Commission (FCC), according to mining industry executives familiar with the matter.
The detention of mining equipment appears selective, targeting only Bitmain's newest models while allowing hardware from competitors like MicroBT and Canaan to enter normally. Industry sources estimate around 200 units are currently held at various ports, with some shipments detained for over two months.
“CBP holds extending beyond 30 days with no clear requests of the Importer of Record (IOR) are beyond usual service standards and extremely rare,” one source told Blockspace.
SCOOP from @theMiningPod Officials are halting Bitmain units at U.S. ports, industry firms reportThe Customs and Border Protection Agency (CBP) is holding certain imports of @BITMAINtech Antminer ASICs at ports of entry to the United States, Blockspace has learned, from…
— Blockspace Media ???? (@blockspacepod) November 25, 2024
The crackdown may be linked to broader concerns about Chinese technology components. Speculation centers on the use of chips from Sophgo, a semiconductor firm under scrutiny for alleged sanctions violations related to Huawei. Bitmain's newer models reportedly incorporate Sophgo's CV1835 chip, though the company sources components from multiple vendors.
Mining companies report mounting storage fees, with one firm facing charges exceeding $200,000. Several have engaged legal counsel to seek clarity from regulatory authorities, while others are actively rerouting shipments to avoid certain entry points, particularly on the West Coast.
Wall Street Bitcoin Miners Face Potential Threats
Several major publicly-traded Bitcoin miners on Wall Street have announced plans to expand their mining fleets and increase their mining rates. Hut 8 (NASDAQ: HUT) revealed earlier this month that they ordered over 31,000 BITMAIN Antminer S21+ units.
“The S21+ offers a faster payback period than more efficient models across a wide band of future hashprice scenarios, enabling us to optimize investment returns and accelerate value creation,” commented Asher Genoot, CEO of Hut 8.
While these machines were scheduled for delivery in early Q1 2025, their future now appears uncertain.
HIVE Digital Technologies (NASDAQ: HIVE) has also invested in new mining equipment. Despite recent reports of Bitmain equipment being blocked at ports, HIVE works with another Chinese manufacturer, Canaan. Last week, they ordered 5,000 new Avalon A15-194T ASIC miners, shortly after placing an order for 6,500 of the same units.
“We want to express our sincere gratitude to HIVE for choosing Canaan’s mining solutions for their operations,” said Nangeng Zhang, Chairman and CEO of Canaan. “Securing a significant order is always rewarding, but it holds particular meaning when it comes from HIVE—a long-standing customer and a pioneer in Bitcoin mining.”
Wall Street Bitcoin miners are rushing to boost their hashrate as their profitability continues to decline. Recent reports show that even the largest miners, including HIVE, Marathon Digital, and TeraWulf, are struggling to stay afloat and generate net profits. TeraWulf reported a net loss of $22.7 million, while Marathon Digital Holdings recorded a significant net loss of $124.8 million in Q3 2024.
This article was written by Damian Chmiel at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments