CleanSpark Faces $185M Tariff Risk as US Increases Scrutiny of Mining Hardware

CleanSpark is disputing the U.S. Customs Service's claim that it must pay $185 million in retroactive duties on allegedly imported Chinese Bitcoin miners in 2024. The dispute comes amid the company's record financial results.

Summary

• CleanSpark could face a potential $185 million tariff dispute with the US Customs Service over the alleged Chinese origin of Bitcoin miners imported in 2024.
• The dispute arose in connection with CleanSpark's report of record earnings for the third quarter of 2025: net income was $257.4 million, and revenue increased by 91%.
• Similar attention has also been given to the IREN miner, highlighting broader U.S. customs controls on the import of cryptocurrency mining equipment.

As reported in TheMinerMag on August 8, in late May 2025, U.S. Customs and Border Protection began issuing invoices to CleanSpark, demanding payment for what it believed to be improperly declared imports of Bitmain Antminers between April and June 2024.

The report says that CBP claims the equipment was made in China, making it subject to high punitive tariffs under current U.S. trade restrictions. However, CleanSpark claims its suppliers have provided documentation proving the miners were manufactured outside of China. The company said it will “vigorously” defend that claim.

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The $185 Million Origin Dispute and CleanSpark's Risky Defense

According to the report, if U.S. Customs and Border Protection prevails in court, CleanSpark could face a massive $185 million in retroactive tariffs. The fine could amount to nearly 70% of the company’s record net profit for the third quarter of 2025, not including additional statutory interest.

The agency’s invoices cover all Bitmain Antminers imported between April and June 2024, when CleanSpark’s fleet consisted exclusively of these devices. Although the company has not set aside provisions for potential liability, citing the low probability of payment in the June 30 documents, the amount could be one of the largest known tariffs in cryptocurrency mining history.

CleanSpark’s defense rests on two key elements: sales contracts that indicate non-Chinese origin and supplier documentation that it says demonstrates compliance. “This allegation is without merit,” the company said in its filing with the U.S. Securities and Exchange Commission (SEC), implying that CBP’s assessment is inconsistent with both the documents and contractual warranties.

A pattern emerges

CleanSpark is not alone in this issue. IREN, another publicly traded mining company, reported a $100 million dispute with the CBP in early 2025 over similar import allegations from April 2024 to February 2025. Both cases involve Bitmain equipment, though neither company accused the manufacturer of providing false information.

The accumulation of deadlines and mounting liabilities point to broader and more aggressive U.S. Customs enforcement efforts to scrutinize origin declarations for cryptocurrency mining equipment. These measures increase scrutiny and operational risks faced by miners beyond market factors, making supply chain transparency a critical aspect of the industry’s future.

Record profits overcome regulatory hurdles

The tariff dispute comes as CleanSpark is celebrating its most profitable quarter yet. On August 7, the company reported net income of $257.4 million, up 91% year-over-year, and its Bitcoin treasury is now valued at more than $1 billion.

CEO Zach Bradford emphasized that the results were achieved “without raising capital through an equity offering since November 2024,” a subtle nod to the company's ability to weather financial challenges.

With $933.3 million in working capital, CleanSpark can absorb a potential $185 million loss, but not without compromising strategic initiatives like its recently launched derivatives strategy or planned hashrate expansion.

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Source: cryptonews.net