Bitcoin Halving Returns Diminish Despite Record Prices

Bitcoin continues to shatter price records, recently surpassing $120,000, yet new data reveals a concerning trend: post-halving returns are diminishing dramatically. While the cryptocurrency’s value has surged over 9,110-fold since 2012, the magnitude of gains following each halving event has compressed significantly, dropping from 29x returns in 2017 to just 93.1% in the current cycle despite unprecedented institutional adoption and network growth.

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Top Bitcoin Mining Firms Shift to US Amid Tariffs

The world’s top three Bitcoin mining machine manufacturers—Bitmain, Canaan, and MicroBT—are setting up US production bases to avoid tariffs imposed during the Trump administration. Bitmain, the largest of the three, began US production in December, while Canaan and MicroBT are also localizing operations. Meanwhile, US-based Auradine warns of security risks from Chinese-made mining rigs, though industry leaders dispute these claims. The shift highlights growing tensions in the global Bitcoin mining supply chain, with North America hosting 30% of mining activity but relying heavily on Chinese hardware.

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Top Bitcoin Mining Firms Shift Production to US Amid Tariffs

Bitmain, Canaan, and MicroBT, responsible for 99% of global Bitcoin mining ASIC production, are establishing US-based manufacturing units in response to high tariffs on Chinese imports. According to a Reuters report, the shift comes after US President Donald Trump imposed a 25% tariff, which had previously exceeded 100%. A Cambridge University study reveals Bitmain holds 82% of the market, MicroBT 15%, and Canaan 2%. This strategic relocation aims to mitigate costs and maintain competitiveness in the evolving crypto-mining landscape.

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Chinese Bitcoin Mining Giants Shift Production to US Amid Tariffs

China’s leading Bitcoin mining hardware producers—Bitmain, Canaan, and MicroBT—are shifting some manufacturing operations to the US to counter rising tariffs imposed by the Trump administration. These firms, responsible for over 90% of global mining rigs, seek to reduce costs and maintain market access. Meanwhile, US-based Bitcoin miners now account for a record 31.6% of the global hashrate, signaling America’s growing dominance in industrial-scale mining. The relocation may also trigger regulatory scrutiny over Chinese involvement in critical US infrastructure.

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China’s e-CNY Push Aims to Challenge US Dollar Dominance

China is aggressively promoting its digital yuan (e-CNY) as part of a strategy to diversify the global currency system and reduce dependence on the US dollar. The People’s Bank of China (PBOC) is establishing an international e-CNY hub in Shanghai to facilitate cross-border transactions, supported by projects like mBridge—a collaboration with Hong Kong, Thailand, and the UAE to bypass SWIFT. However, challenges remain, including the yuan’s limited convertibility and privacy concerns over real-time transaction tracking. Simultaneously, China faces scrutiny over unregulated offshore Bitcoin sales and unclear crypto asset management policies. Ironically, while cracking down on crypto domestically, Chinese mining firms like Bitmain are expanding operations in the US, raising geopolitical questions.

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Bitcoin Mining Now Over 50% Sustainable Energy

The Cambridge Centre for Alternative Finance reports that sustainable energy now powers over 50% of Bitcoin mining, marking a significant shift toward greener practices. Despite a 17% YoY rise in electricity consumption (138 TWh), the industry has improved efficiency (28.2 J/TH) and reduced e-waste (86.9% recycled). North America leads with 75.4% of the global hash rate, while miners face economic pressures from high energy costs (80% of expenses) and regulatory uncertainty. Diversification into AI and sustainable initiatives, alongside accurate price forecasting ($80.5K median projection), signals a maturing sector adapting to environmental and market challenges.

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Bitcoin Mining’s Hidden Environmental and Health Costs

A Harvard-led study exposes the extensive environmental and health impacts of Bitcoin mining in the U.S., showing that 34 major mines consumed 32.3 TWh of electricity—33% more than Los Angeles—with 85% sourced from fossil fuels. This energy demand generated dangerous PM2.5 pollution, affecting 46.2 million Americans across 27 states, including cities far from mining sites like New York and Houston. The pollution increases risks of premature death and heart disease. Meanwhile, U.S. miners face rising costs due to 145% tariffs on Chinese equipment, while Senators Whitehouse and Fetterman propose the Clean Cloud Act to enforce stricter carbon standards on data centers.

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US Authorities Release Seized Bitcoin Mining Hardware Amid Ongoing Trade Tensions

U.S. authorities have begun releasing thousands of seized Chinese-made Bitcoin mining machines, although many remain in custody due to regulatory enforcement linked to trade tensions and concerns over Chinese technology. In Thailand, police shut down a Bitcoin mining operation that allegedly stole around $3 million worth of electricity, involving over 1,000 machines. These actions reflect ongoing challenges for U.S.-based miners who depend on regular equipment upgrades to stay competitive in a market where the U.S. holds 43.8% of the Bitcoin network hashrate.

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US Customs Intensifies Seizures of Bitcoin Mining Hardware Imports

US Customs and Border Protection (CBP) has intensified its crackdown on bitcoin mining hardware imports, seizing ASICs from manufacturers like MicroBT, Canaan, and Bitmain. This enforcement, requested by the FCC, targets equipment lacking FCC approval and is part of a broader effort to support domestic silicon industries. Nearly all Asian ASIC manufacturers are reportedly facing customs clearance issues, prompting some companies to seek legal assistance against the seizures.

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