Trump met with Bitcoin mining execs at the former president’s Mar-a-Lago resort on June 11.
Donald Trump is courting the Bitcoin mining industry in the Republican presidential candidate’s latest pro-crypto push.
On June 11, Trump said he wants every remaining Bitcoin (BTC) to be mined within the United States. Trump added that bolstering the domestic mining industry will also serve to promote the country’s energy industry and protect the nation against hypothetical moves to introduce a central bank digital currency (CBDC).
“Bitcoin mining may be our last line of defense against a CBDC,” Trump posted on his social media platform, Truth Social. “We want all the remaining Bitcoin to be made in the USA!!! It will help us be energy dominant.”
Trump also held a meeting with executives from Bitcoin mining companies including CleanSpark Inc., Riot Blockchain, and Galaxy Digital at his Mar-a-Lago residence.
Bitcoin’s supply is hard-capped at 21 million coins. Nearly 94% of BTC or 19.7 million coins have already been mined, much of which was produced in jurisdictions offering cheap renewable energy such as China. The final BTC is expected to be mined by the year 2140.
Amanda Fabiano, head of mining at Galaxy Digital and one of the meeting’s attendees, tweeted that promoting the Bitcoin mining industry serves to strengthen the U.S. electrical grid and foster job creation, particularly in “small-town” areas.
“Our industry has faced an enormous amount of political struggle, fueled by misinformation and misguided narratives,” she said. “Today, a representation of Bitcoin miners had the chance to explain that to President Trump.”
CleanSpark co-founder, Matthew Schultz, was also present at the meeting. Schultz told Bloomberg that Trump committed to supporting the Bitcoin mining industry should he become re-elected.
The news follows President Joe Biden proposing a 30% tax on electricity used for Bitcoin mining, among other regulations aimed at the cryptocurrency industry in March.
The Biden administration’s proposed 2025 budget estimated the new taxes could generate nearly $10 billion in revenue next year and more than $42 billion across the next decade. The proposed excise tax targets firms using computing resources to mine digital assets and would be phased in over three years: starting at 10% in the first year, increasing to 20% in the second, and reaching 30% in the third year, effective after Dec. 31, 2024.
Despite Trump’s pro-mining pronouncements, the former president failed to provide any policy proposals aimed at supporting the U.S. mining sector.
Bitcoin halving hits miner revenues
The cryptocurrency mining sector has recently taken a hit after mining rewards were cut in half by the quadrennial Bitcoin halving event in April.
Data from blockchain.com shows that on April 16, the day of the halving, the Bitcoin hash rate peaked at 650 exahashes per second (EH/s), but has since dropped to 593 EH/s — indicating that many inefficient miners have been forced offline due to reduced rewards no longer offsetting their operational expenses.
Other miners have been selling off their reserves in a bid to keep afloat, presumably anticipating higher BTC prices in the future. According to CryptoQuant, miner reserves have dropped to their lowest level since July 2021 amid the largest annual drop since 2011.
Trump courts crypto industry
Despite Trump’s recent pro-crypto pivot, some in the web3 community are skeptical that the presidential candidate would deliver on his promises if re-elected, noting that he failed to introduce permissive cryptocurrency regulations during his four-year term from 2016 through 2020.
His recent supportive remarks appear aimed at gaining the favor from the crypto industry ahead of the 2024 election. In 2021, Trump labeled Bitcoin a “scam.”
Regardless, Trump’s pro-cryptocurrency stance has garnered him support from web3 industry leaders. He reportedly raised $12 million at a Silicon Valley fundraising event on June 6. Last month, Trump also announced he would accept political donations in the form of cryptocurrencies.
