A member of Congress from the Republican party is requesting that the U.S. Department of the Treasury conduct a national security assessment of two companies with connections to China that are involved in the production of Bitcoin mining equipment. This request stems from concerns about their expanding presence within the United States.
Key Points:
-
Representative Zachary Nunn is advocating for an investigation into the Chinese mining businesses Bitmain and Cango due to potential security risks.
-
Bitmain dominates the Bitcoin mining hardware market, controlling over 80% globally.
-
Nunn suggests that the lack of transparency in ownership and possible ties to state entities necessitate a review by the Committee on Foreign Investment in the United States (CFIUS).
In a letter dated September 2nd, Iowa Representative Zachary Nunn addressed Treasury Secretary Scott Bessent, requesting an investigation into Bitmain Technologies Ltd. and Cango Inc. The letter, which was reviewed by Bloomberg, highlights concerns regarding unclear ownership structures and potential connections to foreign state actors.
Nunn is a member of the House Select Committee on the Chinese Communist Party, a group tasked with evaluating the influence of Beijing across critical industries.
Based in Beijing, Bitmain is the primary global supplier of Bitcoin mining devices. According to a report from the University of Cambridge, they account for over 80% of the global distribution.
Cango, a company listed on the Nasdaq stock exchange and also based in China, has recently been mentioned as a potential acquisition target by Bitmain. However, Bitmain has publicly refuted these claims.
“Bitmain and Cango appear to be increasing their operations in the U.S. through intricate ownership structures and financial arrangements that may not be completely visible to regulators or the general public,” Nunn stated.
The letter from the congressman specifically requests that the Committee on Foreign Investment in the United States (CFIUS) initiate an inquiry into the activities of these two companies.
CFIUS has played a key role in previous high-profile reviews, including the investigation of TikTok and the blocked acquisition of Grindr.
Last year, a review conducted by CFIUS resulted in President Biden preventing a cryptocurrency mining operation from acquiring land near a strategic Air Force base in Wyoming due to concerns about surveillance.
Nunn’s request comes shortly after American Bitcoin Corp, a mining enterprise supported by Eric Trump, purchased over $300 million worth of mining equipment from the US-based subsidiary of Bitmain.
Bitmain later clarified that it is not pursuing ownership of US power infrastructure, addressing reports suggesting that the company was expanding into energy markets.
Nunn cited risks associated with Cango’s energy consumption, possible affiliations with foreign governments, and broader concerns about surveillance using chips manufactured abroad.
Both Bitmain and Cango have stated to Bloomberg that they adhere to U.S. laws and have no connections to governmental organizations.