Chinese cryptocurrency mining hardware maker Bitmain is bracing for harder times as the China-US trade war shifts into high gear, with shipments to one of its overseas markets facing new tariffs since August 23.
That could be a problem for Beijing-headquartered Bitmain, which filed for a Hong Kong stock market listing in September, and is seen as the most exposed among Chinese mining hardware makers to US trade barriers, according to analysts.
The tariff, which affects all Chinese cryptocurrency mining equipment makers exporting to the US, has come a time when other players such as Cannaan and Ebang International have filed applications to list on the Hong Kong bourse.
The office of the United States Trade Representative in June categorised Bitmain’s mining hardware, called Antminer S9, as “electrical machinery apparatus” which is subject to a 2.6 per cent tariff. Previously the goods were classified as “data processing machine”.
The reclassification brought the mining hardware under the list of Chinese goods subject to the additional 25 per cent tariffs, which took effect in August. The outcome is that Chinese cryptocurrency mining gear makers now face tariffs on their US shipments of 27.6 per cent, up from zero previously. In September, Bitmain filed for a Hong Kong listing which would reportedly raise US$3 billion.