Tariff Troubles? CleanSpark to Pay $185M After Importing Bitcoin Miners from China

Bitcoin mining company CleanSpark Inc. is facing a massive setback after the United States Customs and Border Protection (CBP) ruled that it must pay for importing mining equipment believed to be from China.

Between April and June 2024, CleanSpark imported a large number of Bitcoin mining rigs. However, CBP recently decided that these machines are of Chinese origin, even though they may have passed through other countries before arriving in the U.S. Due to this classification, they are now subject to heavy import taxes, a trade rule that applies extra duties to goods from China.

$185 Million Tariff Shock for CleanSpark

CleanSpark firmly denies the claim and said it is still working with CBP to review the decision. However, if the ruling stands, the company may need to pay up to $185 million in backdated tariffs, a cost that could seriously affect its finances.

According to data from BitcoinTreasuries, CleanSpark currently ranks as the third-largest BTC holder among Bitcoin miners. It trails MARA Holdings and Riot Platforms. At the time of writing, it has 12,608 BTC (worth $1.47 billion) in its balance sheet. The firm owes this milestone to its increased mining capacity.

Unlike CleanSpark, MARA Holdings and Riot Platforms owe their leading positions to their adoption of periodic BTC acquisitions. These firms have even explored various means, such as convertible note offerings, to raise cash to fuel their bitcoin-buying spree.

Today, MARA Holdings holds 50,639 BTC (worth $5.91 billion), making it the second-largest BTC holder after Strategy. On the other hand, Riot boasts 19,273 BTC (valued at $2.25 billion) in its balance sheet.

Notably, CleanSpark’s stock, CLSK, saw a price tumble following news about the tariff. At press time, CLSK sold for $10.27, representing a 4.2% price decline.

This case comes just as the entire Bitcoin mining industry is reacting to rising import tariffs on mining machines. According to a recent report, several mining firms rushed to bring in machines before new duties kicked in. Some even chartered private planes, paying between $2 million and $3.5 million per flight to speed up deliveries before tariffs increased to as high as 36%.

The sudden rush shows just how important and expensive mining equipment has become in the crypto world. As tariffs increase and regulations tighten, miners may have to rethink how and where they source.

Chinese Miners Flock to the U.S.

As a result of rising trade tensions and strict crypto laws in China, three big Chinese Bitcoin mining companies are moving their operations to the United States. The shift comes at a time when the U.S.-China trade war is affecting many industries, including crypto.

Recently, the U.S. increased tariffs on mining machines made in China, making them more expensive to import. Because of this, American mining companies are now looking for safe sources of equipment to avoid paying high fees. As a result, many crypto exchanges and mining companies were forced to shut down or relocate to other countries.

Now, these three Chinese companies are relocating to the U.S. so they can continue their work in a country where cryptocurrency is recognized by the government and regulated. By moving, they hope to keep their businesses alive, attract international investors, and avoid problems with Chinese laws and U.S. tariffs.

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