Gate Institute: An in-depth interpretation of the impact of tariff policy on Bitcoin mining

Summary

• In April 2025, the Trump administration announced the launch of a “reciprocal tariff” policy that would impose a uniform 10% “minimum base tariff” on global trading partners, which triggered a sharp shock in global risk assets.
• Bitcoin is a public chain that mainly uses the PoW (Proof-of-Work) mechanism, which relies on physical mining machines for mining, and the mining machines are not on the list of US tariff exemptions, so mining companies are facing greater cost pressure.

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• The decline of mining machine manufacturers in the past month is the most obvious, and the core reason is that mining machine manufacturing has been hit by tariff policies on both the supply side and the demand side.
• Proprietary mining farms are mainly affected by the supply side, and the business process of selling bitcoin to cryptocurrency exchanges is less affected by tariff policies.

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• Cloud computing power mining farms are relatively least affected by the tariff policy, because the essence of cloud computing power is to pass on the purchase cost of mining machines to customers through computing power service fees, so the erosion of platform profits is significantly weaker than that of traditional mining models.
• Although the tariffs have hit the U.S. bitcoin mining, Bitcoin spot ETF funds represented by BlackRock IBIT and U.S. stock hoarding companies represented by MicroStrategy still have the pricing power to control Bitcoin.

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• Bitcoin price is no longer the only indicator, policy trends, geopolitical security, energy scheduling, and manufacturing stability are the real keys to the survival of the mining industry.
  

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