Chinese bitcoin miner maker MicroBT is looking to capture a larger share of the US market by setting up its first production center overseas.
The company said on Friday it had partnered with New York-based Foundry Digital LLC and a Southeast Asian company to improve supply chain efficiency for northern buyers. Americans of its flagship Bitcoin mining equipment.
The Southeast Asian listed company – which MicroBT declined to name – is contracted to produce and deliver MicroBT’s WhatsMiner equipment to US investors, who would otherwise pay an additional 25% tax if they received shipments directly from China due to US tariffs.
The strategy is similar to that adopted by Beijing-based Bitmain, which contracts a production facility in Malaysia to handle manufacturing and shipments overseas.
As part of the deal, Foundry, a subsidiary of Digital Currency Group (DCG) that provides finance and minor purchases to institutions in North America, will be the first to receive any new batch of MicroBT equipment produced in the industry. plant in Southeast Asia.
DCG, which owns 100% CoinDesk, previously announced plans to invest more than $ 100 million in its foundry business through 2021 to provide loans to bitcoin mining customers and purchase equipment wholesale from them.
“Through our collaboration and the enhanced production capabilities of MicroBT, we look forward to continuing to facilitate the timely purchase and delivery of the latest generation bitcoin mining hardware for our customers, who are institutional cryptocurrency miners. in North America, ”said Mike Colyer, CEO of Foundry.
The move also highlights MicroBT’s efforts to continue to challenge Beijing-based Bitmain’s dominance in the bitcoin miner market, both domestically and abroad.
MicroBT managed to increase its market share by selling some 600,000 WhatsMiner units worth over $ 500 million in 2019. This coincided with Bitmain’s current internal crisis, which has caused notable delays in production. and shipping.
“The foundry team’s deep understanding of the mining sector and regional expertise has already helped us make initial testing of this new supply chain a success,” said Jiangbing Chen, COO of MicroBT. “We will continue to work closely with Foundry to provide the highest quality machinery and aftermarket service to our customers in North America.”