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Friday Nov 21 2025 15:00
2 min
Bitmain, a leading Chinese manufacturer of application-specific integrated circuits (ASICs) for Bitcoin mining, is facing increased scrutiny in the United States, raising concerns about national security. Here's a breakdown of the situation:
According to a Bloomberg report, the US Department of Homeland Security has initiated an investigation into Bitmain, codenamed "Operation Red Sunset." The investigation aims to determine whether Bitmain's ASICs could be remotely controlled for purposes of espionage or to sabotage the US power grid. Investigators have reportedly disassembled some devices to examine them for malicious capabilities, though it's unclear if anything was found.
Bitmain controls over 80% of the Bitcoin mining ASIC market, according to a Cambridge report. Furthermore, Bitmain and the second-largest manufacturer, MicroBT, control 97% of the market share combined. This dominance raises concerns about Chinese control over a vital sector.
Restricting Bitmain equipment could have consequences for former US President Donald Trump's family. In August, American Bitcoin, a Bitcoin mining company backed by members of the Trump family, acquired a fleet of 16,299 Antminer U3S21EXPH units from Bitmain. The company also inherited “substantially all” of Hut 8’s ASICs, including the 31,145 Bitmain Antminers S21+ machines it acquired about a year ago.
Bitmain has vehemently denied any capability to remotely control its machines, asserting its strict compliance with US and applicable laws and regulations and its lack of involvement in activities posing risks to US national security.
Given Bitmain's dominance, many major US-based crypto mining companies could be affected by the findings of this investigation. The industry already experienced a taste of what might happen when publicly traded mining companies in the US felt the effects of trade tensions between the United States and China through delays in receiving shipments of their ASICs.
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