Bitmain Under U.S. National Security Scrutiny

Bitmain, the world’s largest maker of crypto mining machines, is currently facing scrutiny from the United States authorities. According to a Bloomberg report, they are investigating whether Bitmain’s products pose national security risks. 

The Department of Homeland Security (DHS) has been looking into this issue for several months under the name Operation Red Sunset. This investigation is part of growing concerns about Chinese-owned technology operating near important U.S. infrastructure.

Bitmain Denied Allegations

Meanwhile, the probe gained urgency after a New York Times report last year. The report showed that some Bitcoin mining facilities connected to the Chinese Communist Party were located near sensitive U.S. sites. These findings raised fears that mining equipment could be used for spying, stealing information, or disrupting the electricity grid.

Ultimately, the focus of the inquiry is whether Bitmain’s mining machines can be accessed remotely by outside operators. If such access exists, it could lead to serious risks due to the high amount of energy used and the connectivity of large mining farms.

It is worth noting that Bitmain has strongly denied all allegations. The company claims it knows nothing about the investigation and calls the claims “unequivocally false.” Bitmain asserts that its products do not have remote control features. The manufacturer also confirmed that it follows U.S. laws, regulations, and cybersecurity standards.

While Operation Red Sunset has yet to reveal its findings, the results could have major impacts on U.S. mining operations in the future.

Bitmain Opens First U.S. Factory

Meanwhile, the company announced its plans to open its first manufacturing facility in the United States. Bitmain confirmed it will launch a new headquarters and production line before the end of the third quarter of 2025. No doubt, this is a big move in its plans to grow globally. The news comes after Bitmain said in December 2024 that it desires a stronger presence in the U.S. market.

As reported by TheCoinRise, the company is still deciding whether to build the facility in Texas or Florida. Bitmain plans to hire around 250 local workers for roles in manufacturing and on-site maintenance. These employees will be responsible for building and servicing the company’s advanced crypto mining rigs.

Bitmain Sets Sights on U.S. Amid Mining Rig Frenzy

The China-based Bitcoin mining hardware giant expects to begin production in early 2026. Irene Gao, Bitmain’s Global Business Chief, explained that manufacturing close to U.S. customers could reduce shipping delays. She said it could also help avoid risks tied to tariffs and international logistics.

Recall that mining machines are currently in high demand in the industry. In April, after the U.S. government paused high import taxes, many American miners had to buy more machines offshore quickly, pushing prices up. However, Bitmain’s new facility plan could help reduce the pressure. It would also make it easier and faster for miners to get the equipment they need without importing.