US Bitcoin mining operations are facing significant delays after the Customs and Border Protection (CBP) agency held shipments of Bitmain Antminer devices at multiple ports of entry, Blockspace reported on Nov. 25.

The detained equipment includes Bitmain’s S21 and T21 application-specific integrated circuits (ASICs), which are essential for Bitcoin mining.

Several mining companies have reported waiting as long as two months for the equipment, with one company citing holding fees exceeding $200,000 for 200 units.

The CBP is reportedly acting at the request of the Federal Communications Commission (FCC), although the exact reasons for the enforcement action remain unclear.

National security concerns

The delay appears to be connected to Bitmain’s ties to Sophgo, a chip designer that became the subject of a US Department of Commerce investigation in October.

The probe was launched after chips produced in Taiwan were allegedly incorporated into Huawei processors. Huawei, under US sanctions since 2019, has long been a focal point of national security scrutiny.

While the CBP has targeted shipments from Bitmain, ASICs produced by other Chinese manufacturers have not faced similar detentions. Advanced Targeting Unit personnel, tasked with identifying high-risk cargo, are reportedly involved in the holds at certain ports.

Broader implications

The situation highlights the challenges facing US miners who rely heavily on Chinese-manufactured mining equipment. China supplies the majority of chips used globally in crypto mining, with Bitmain being a dominant player in the market.

Despite trade restrictions, Bitmain has sought to expand its global footprint by establishing offices outside China to avoid tariffs and diversify its operations.

The delivery freeze has also reignited discussions about China’s influence on the crypto sector. While Beijing banned crypto mining domestically in 2021, Chinese-owned companies continue to mine Bitcoin within the US, further complicating the regulatory landscape.

Industry players are seeking clarity from regulators as costs rise and operational delays mount. Both the CBP and FCC have yet to release public statements addressing the detained shipments.

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