U.S. Miners Offload BTC Amid Tariff Fears and Profit Squeeze

Bitcoin mining companies that are publicly traded offloaded more than 40% of their newly mined BTC in March

U.S. miners sold more than 40% of their newly mined BTC in March, marking the most significant monthly sell-off since October 2024, according to an analysis by TheMinerMag.

The timing of these sales coincides with mounting economic uncertainty. With financial markets under pressure and costs rising across industries, many miners appear to be liquidating their reserves to stabilize their balance sheets. This wave of selling has added to the broader volatility in the crypto market. In March alone, Bitcoin dipped by 2.3%, following a steep correction of over 17% in February, per data from CoinGlass.

The challenges go far beyond price action. Bitcoin miners are grappling with rising energy costs, global trade disruptions, and increasing competition. The landscape is becoming even more difficult as U.S. trade policies ramp up pressure on supply chains. Braiins’ CMO, Kristian Csepcsar, highlighted that building mining rigs entirely in the U.S. isn’t feasible.

“The U.S. doesn't make the chips, the foundry services are done in China or Taiwan, and the modules are assembled in Mexico or Canada before arriving in the U.S. for final integration,” Csepcsar explained.

This dependence on global supply chains ties into a crucial point: Donald Trump’s proposed tariffs are raising serious concerns across the sector. Energy, a substantial portion of operational expenses, is a key target for these tariffs. These new taxes threaten to tip the scales for many U.S.-based operations.

Hashlabs CEO Jaran Mellerud sheds light on the potential impact of tariffs on key hardware components. With the cost of importing mining machines into the U.S. set to rise by nearly 25%, suppliers might prefer to divert equipment to regions like Finland, which are not subject to these levies.

In a recent post, Mellerud pointed out that if these tariffs take effect, mining in the U.S. may become financially unsustainable. This shift could create an opening for international competitors to claim a larger share of the market.

“It seems like the U.S. is pricing itself out of the Bitcoin mining market with new tariffs and energy costs being 3-4x higher than in Canada, Iceland, or Finland (which also has no tariffs). Maybe it's best to leave it to the other countries to focus on, while the U.S. can focus on other strengths.”

As the dust settles on March, the crypto market is coping with the weight of macroeconomic trends and U.S. trade policies.