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American Bitcoin Corp., a mining company linked to US President Donald Trump’s family, has completed one of the largest hardware purchases in the crypto sector this year.

Reports have disclosed that the firm paid around $314 million for 16,290 Antminer U3S21EXPH units from Chinese mining giant Bitmain.

Massive Purchase Ahead Of Tariffs

The order locks in a huge amount of high-performance ASIC machines capable of producing about 14.02 exahashes per second in combined hashing power.

This level of output could boost American Bitcoin’s share of global mining capacity. The company originally had an option for as many as 17,280 units but decided to move fast to avoid price hikes from US tariffs on Chinese-made mining gear.

Industry trackers say orders of this scale have been rare for American miners in 2025. While the firm has not revealed where the rigs will be deployed, sources familiar with the matter said they plan to distribute them across multiple large sites to reduce operational risks.

Bitmain’s Antminers at Hut 8’s Vega facility in Texas. Source: The Miner Mag.

Political And Trade Pressures

The deal came just before the Trump administration began enforcing tariffs on imported Chinese mining hardware. The policy covers a wide range of technology goods, including ASIC miners, and is aimed at pushing production back to the US. However, critics say these tariffs could raise operating costs for domestic miners.

Jaran Mellerud, CEO of BTC mining firm Hashlabs, warned that higher costs could cut into profitability. He warned that steep price increases could raise mining costs in the US to a point where demand collapses, blaming regulators he viewed as ineffective.

Bitmain Eyes US Expansion

Bitmain, which controls about 80% of the global ASIC market according to a University of Cambridge study, is adjusting its operations in response to the tariffs.

The company plans to open its first US-based ASIC production site in early 2026. By the end of this year, it also expects to set up a new headquarters in Texas or Florida.

The aim is to make its products accessible to US customers at reasonable prices and escape import taxes by manufacturing locally.

Industry experts opine that this action would prompt other industry leaders such as MicroBT and Canaan to explore the possibility of diverting some production capacity to North America.

Although the complete implications of the tariffs on the mining supply chain are still uncertain, this recent acquisition indicates the depth of stakes for manufacturers and operators alike.

For American Bitcoin, the $314 million order indicates faith in the profitability of the industry in spite of fluctuating Bitcoin prices and increased competition.

For Bitmain, it’s an indication that being able to bend with political and economic gusts will be the ticket to maintaining its dominance of the US market.

Featured image from Pexels, chart from TradingView

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The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is taking action against a Philippines-based company accused of facilitating a popular crypto investment scam.

In a statement, the Treasury Department says that Funnull Technology Inc. is facing US sanctions for allegedly providing computer infrastructure to hundreds of thousands of websites engaged in pig butchering scams.

Perpetrators of pig butchering scams use fake identities to build online relationships with unsuspecting individuals with the aim of introducing them to fraudulent cryptocurrency investment opportunities. Criminal organizations based in Southeast Asia largely carry out the scheme by exploiting victims of human trafficking.

Funnull purportedly buys IP addresses from major cloud services companies and sells these to cybercriminals to host scam platforms and malicious websites.

The company also provides services that make it easier for bad actors to impersonate trusted brands and allow them to quickly change to a different domain name and IP address when the legitimate providers attempt to take the websites down.

In 2014, Funnull bought and altered a repository of codes used by web developers to redirect visitors of legitimate sites to scam and online gambling sites, some of which are associated with Chinese criminal money laundering operations.

The Treasury Department says that Funnull has ties to the majority of the crypto investment scam websites that were reported to the FBI. US-based victims claim losing over $200 million to these schemes, or an average of $150,000 per individual.

The OFAC is also imposing sanctions against Funnull’s administrator, Chinese national Liu Lizhi, who was in possession of documents that contain information about the company’s employees, including their performance and progress on tasks.

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The boom in artificial intelligence (AI) may be hitting its next leg. Microsoft just reported accelerated cloud computing growth due to AI, while OpenAI’s ChatGPT is gaining hundreds of millions of users around the globe. One stock benefiting from this recovery is Super Micro Computer (SMCI 5.00%). The data center assembler is up around 20% in the last month and just got an upgrade from a Wall Street analyst.

Should you buy Super Micro Computer stock to for the next leg up in AI?

Riding the AI revolution

In the last five years, Super Micro Computer’s revenue is up over 500%. This is due to the growing spending on data center solutions from AI infrastructure providers like Microsoft. Super Micro Computer is an expert in assembling data centers with advanced computer chips from the likes of Nvidia, where Super Micro Computer spends a lot of money.

Companies like Microsoft will go to Super Micro Computer for efficient outsourcing of AI data center assembly as they try to build out more computing resources as fast as possible to keep up with demand. Management is currently guiding for $21.8 billion to $22.6 billion in revenue this fiscal year (ending in June), which is a slight decline from its previous guidance but would still represent solid growth from $15 billion in revenue last fiscal year.

As demand seems to be picking up for AI infrastructure again, Super Micro Computer is seeing its stock rocket higher. However, it is still down 67% from all-time highs and currently sports a market cap of $23 billion.

Image source: Getty Images. Super Micro Computer is a beneficiary of AI.

Slim margins and cyclicality

Super Micro Computer is simply a middleman for computer chips and data centers. Nvidia has a 62% operating margin. Amazon Web Services (AWS) has a 37.5% operating margin. Last quarter, Super Micro Computer had a gross margin under 10%.

What does this mean? Super Micro Computer is able to sell its products at only a slight premium to its input costs, which gives it extremely slim profit margins compared to its suppliers and customers. Nvidia and the AI cloud infrastructure companies hold a lot of power in the relationship. Last quarter, Super Micro Computer had a slim operating margin of just 3.2%.

This could pose trouble in a cyclical downturn, which will eventually come for the AI market. This is the ideal operating environment for Super Micro Computer — you couldn’t ask for more demand from customers — yet it still is barely generating a profit.

SMCI PE Ratio (Forward) data by YCharts.

Is Super Micro Computer stock a buy?

Things are going well for Super Micro Computer right now. Its stock is up over 1,000% in the last five years, even including its recent drawdown. The stock still looks cheap, with a market cap of $23.2 billion and a forward price-to-earnings ratio of 19. If demand for AI data center assembly keeps growing, the stock will likely be higher in a few years.

I still don’t think it is a good buy for a long-term portfolio. A cyclical downturn will eventually arrive in data center spending, which will almost assuredly lead to declining profit margins for Super Micro Computer. Given its already razor-thin profit margins with demand for its products and services at a fever pitch, it is likely to lose money when the cycle inevitably flips. This may not happen for a year or five, but it will happen eventually.

Super Micro Computer has thin margins because it does not provide the most value for the AI sector. This comes from Nvidia’s innovative computer chips, which it can sell at a premium price, and the cloud infrastructure providers selling computing power to software companies. Super Micro Computer does have a lot of revenue right now, but it is simply a middleman packaging computer chips together. It has practically zero competitive edge.

Even though Super Micro Computer is growing fast today and looks to be trading at a cheap price, investors would be smart to avoid buying shares. This is a cyclical company with no long-term competitive advantage in its industry.

Ethereum market dominance has reached a five-year low, dropping to below 9.4% at the time of writing. The number-two crypto faces mounting challenges in maintaining its position as the King of altcoins in the rapidly evolving digital asset space.

Ethereum’s decline has been slow and painful, testing even the steeliest-nerved among its thriving community and reflecting a significant shift in investor sentiment and market forces. Bitcoin’s rising dominance, which has surged to around 60%, has compounded Ethereum’s struggles.

In February, CryptoSlate reported that Ethereum’s value against Bitcoin had also hit a five-year low, signifying increasing capital deallocation from Ethereum, which has faced difficulties attracting new investments despite its network upgrades and scalability improvements.

Ethereum’s transition to a Proof-of-Stake network and the rise of Layer-2 solutions have contributed to this downturn. While Layer-2 networks have increased transaction efficiency, they have simultaneously diverted activity away from Ethereum’s mainnet, leading to a sharp decline in network revenue. Ethereum risks losing its competitive edge if this trend continues as decentralized applications migrate to alternative blockchains offering lower fees and higher scalability.

Can the world computer reverse its fortunes?

Despite these many challenges, Ethereum continues to show resilience through its staking ecosystem. CryptoSlate reported that staking activity had grown by 5.1% in 2024, with nearly 29% of the total ETH supply locked in staking contracts and 60% of ETH stakers in profit despite the asset’s decline in value. This reflects long-term investor confidence in Ethereum’s potential despite short-term price struggles.

Ethereum founder Vitalik Buterin’s recently announced roadmap emphasizes scalability improvements through sharding and roll-ups, aiming to address congestion issues and enhance transaction efficiency. While these developments are promising, Ethereum must navigate increasing competition from networks like Solana and maintain relevance in the DeFi space to regain market share.

As Ethereum grapples with declining dominance and shifting market conditions, its future hinges on strategic innovation and adaptability. Zero-knowledge proofs (ZKPs), enhanced Layer-2 solutions, and reduced staking requirements could attract new users while addressing scalability concerns.

However, Ethereum’s ability to reclaim its position as the industry’s leading altcoin will require more than technical upgrades. It must also redefine its narrative amid growing competition from Bitcoin and emerging blockchain platforms.

Despite the depressing metrics, community sentiment around Ethereum remains strong at 64% bullish, and many prominent traders are calling the bottom, including Mister Crypto, who posted:

“The sentiment has never been worse. Perfect time for a rally.”

With institutional interest in Bitcoin surging and alternative networks gaining traction, Ethereum faces an uphill battle to restore investor confidence and secure its place. It will be interesting to watch as the world computer attempts to defend its spot in an increasingly competitive market.

Mentioned in this article

Shares of Super Micro Computer (SMCI -6.10%) were heading lower this week as a combination of a sell rating from Goldman Sachs and a broader sell-off in artificial intelligence (AI) stock, which weighed on the maker of AI servers.

According to data from S&P Global Market Intelligence, the stock was down 16.5% for the week as of 3:12 p.m. ET on Thursday.

Image source: Getty Images.

Is Super Micro Computer in trouble?

The market tends to heed ratings changes from Goldman Sachs more so than other investment banks and research firms, so it wasn’t surprising that the stock pulled back on the downgrade.

Goldman Sachs downgraded Supermicro to sell with a price target of $32, arguing that the risk/reward in the stock is now unfavorable. It also noted that competition in AI servers is heating up in response to Supermicro’s sales surging last year. Finally, it said that its gross margins, which are already low, could decline further due to new competition.

Supermicro stock fell as much as 6% on Monday, though it recovered most of those losses by the end of that session, as the broad market surged on hopes for easing trade war tensions.

However, two days later, Supermicro stock was falling, in line with the broad market partly because of President Donald Trump’s announcement of tariffs on foreign vehicle imports. AI stocks fell sharply as investors view that sector as being one of the most at risk of a recession.

What’s next for Supermicro

Super Micro Computer does seem to have put the earlier concerns about the delay in filing its annual report behind it, but the business still needs to perform in order for the stock to do well.

In addition to revenue growth, it’s key for the company to maintain or expand its already-narrow gross margin. In its second quarter, it reported a gross margin of just 11.8%, and operating income fell slightly.

Competition could already be weighing on the stock, though its growth is still strong. Supermicro looks well priced right now, but it will have to defend its market share and margins in order for the stock to be a winner.

Binance is planning on launching trading support for the new native asset of a decentralized network focused on secure data storage.

Binance Launchpool, which lets users stake coins to farm new assets, says its 65th project will be Nillion (NIL), a secure computation network that decentralizes trust for high-value and private data.

Explains the project,

“Nillion is Humanity’s First Blind Computer – a whole new category of decentralized network designed for AI and the future of the Internet. Nillion makes new applications possible by providing storage and computation on high-value, encrypted data without ever seeing it. Whether a user, an app, or an enterprise, your data stays yours – always.”

Between March 21st and 24th, Binance users can lock their BNB, the crypto exchange platform’s native asset, as well as the stablecoins First Digital USD (FDUSD) and USDC, to receive NIL airdrops.

The top global crypto exchange then plans to list the asset on March 24th. Binance will attach a seed tag to NIL, which the exchange applies to lower-liquidity projects that may exhibit higher volatility compared to other listed tokens.

Binance requires users who own assets with seed tags to pass quizzes every 90 days to ensure they’re aware of the risks before trading the tokens.

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