The United States armed raid on a Texas Bitcoin Mining Farm! Bitmain employees arrested, the China-US chip war fully escalates.

The U.S. Immigration and Customs Enforcement (ICE) jointly raided a Bitcoin mining farm in Texas with the FBI and the Department of Homeland Security, with helicopters and snipers fully armed surrounding the site, arresting several employees of Bitmain who are Chinese nationals. On the surface, it appears to be an immigration enforcement action, but it is actually viewed as the latest battleground in the U.S.-China chip war. Experts warn that this marks the formal involvement of the crypto mining industry in geopolitical conflicts, and American mining companies face the risk of supply chain disruptions.

Armed Raid: Helicopters and Snipers Surround Texas Mining Farm

On September 29, the tranquility of Pecos, Texas was shattered. The U.S. Immigration and Customs Enforcement (ICE), in conjunction with multiple federal agencies such as the FBI and Homeland Security Investigations, conducted a military-level raid on the local Lonestar Dream Bitcoin Mining Farm. According to eyewitnesses, the scale of the operation was shocking.

"The helicopter hovered above, snipers positioned at strategic points, fully armed agents surrounded the entire facility... They asked leading questions, constantly inquiring who was in charge of this and who managed that..." a Mining Farm worker who wished to remain anonymous told Blockspace.

The main objective of this operation was not the Mining Farm itself, but rather to target the Bitmain ASIC mining machine maintenance center located within the Mining Farm. After the operation concluded, about 12 to 13 maintenance center employees were taken away from the scene, accounting for nearly half of the total staff at the center. According to reports, the arrested individuals were primarily Chinese citizens with expired visas.

Precision Strike: Why Was Only Bitmain's Maintenance Center Targeted?

It is noteworthy that other large Bitcoin mining farms in the Piotr region were not affected by this action, a detail that has sparked widespread speculation within the industry regarding the true purpose of this operation. The precise strike by law enforcement seems to have specifically targeted the maintenance aspects related to Bitmain, rather than the entire mining industry.

"This is not a random inspection; they clearly know who their targets are," said an industry insider familiar with the situation. "If it were just routine immigration enforcement, such a large-scale federal resource would not be deployed."

Behind Immigration Enforcement: The New Battleground of the China-U.S. Chip War

On the surface, this operation has been characterized as an enforcement action against illegal immigration. However, several industry experts have pointed out that this is likely the latest extension of the US-China "chip war" into the domain of crypto assets.

As early as the end of 2024, the Trump administration had requested U.S. Customs to conduct "strategic reviews" on imported ASIC mining machines, leading to a large number of devices being stranded at U.S. ports. At that time, law enforcement questioned whether the control boards of the mining machines might involve chip technologies related to the U.S. AI restrictions on China.

The relationship with Bitmain has attracted attention

During the same period, the U.S. Department of Commerce launched an investigation into whether the Chinese chip company Sophgo violated U.S. export restrictions. It is worth noting that Jihan Wu, the co-founder of Bitmain, is also a co-founder of Sophgo, and this connection may be a key factor in attracting the attention of U.S. authorities.

"This action can be seen as an 'extended scan' of the US national security system for high-risk components," said a cryptocurrency policy analyst who wished to remain anonymous. "They are not only concerned about the chips themselves but also about the potential for repair networks and technology transfer."

Supply Chain Risks: US Mining Companies Facing Multiple Challenges

The Lonestar Dream Mining Farm incident has sounded the alarm for American crypto mining companies. Experts warn that US mining enterprises will face multiple regulatory pressures in the future, including not only immigration regulations but also the need to comply with technology export controls, land use regulations, energy emission standards, and local noise control requirements.

"This is a turning point," said an analyst from the cryptocurrency consulting firm Digital Asset Research. "US mining companies now must incorporate geopolitical risks into their core operational considerations, which will fundamentally change the industry's cost structure and supply chain strategies."

Decoupling from China Accelerates: Supply Chain Restructuring is Urgent

For American mining companies that are heavily reliant on the Chinese supply chain, risks are rising rapidly. Once relevant components are classified as regulated items by the U.S. government, import delays or bans will directly affect the daily operations and profitability of the businesses.

Industry experts predict that U.S. mining companies may be forced to accelerate their "de-China" efforts to reduce the risk of equipment being seized or maintenance being obstructed. This includes:

Looking for alternative suppliers: Turn to equipment manufacturers in the United States or politically friendly countries.

Establish Autonomous Repair Capabilities: Reduce reliance on original factory repair centers.

Invest in Domestic ASIC Research and Development: Support domestic mining machine research and development projects in the United States.

Diversify geographical risk: Transfer part of the mining operations to countries with more favorable regulations.

Geopolitical Impact: Bitcoin mining has become a national security issue

This raid marks that Bitcoin mining has officially become part of national security and geopolitical competition. As the importance of Bitcoin in the global financial system continues to rise, the ability to control its production infrastructure has also become increasingly important.

"We are witnessing the geopolitical aspects of cryptocurrency infrastructure," said a researcher at a Washington think tank focused on blockchain policy. "Just like semiconductors and rare earths, Bitcoin mining equipment is becoming a new battleground for great power competition."

Opportunities and Challenges of the ASIC Industry in the United States

This development may create opportunities for domestic ASIC mining machine research and development in the United States. Currently, companies like Bitmain dominate the global mining machine market, but geopolitical pressures may prompt the U.S. government to support the development of domestic alternatives.

However, establishing a competitive domestic ASIC industry faces significant challenges, including technological gaps, cost disadvantages, and supply chain complexities. In the short term, U.S. mining companies may encounter issues such as rising equipment costs and maintenance difficulties, which will directly impact their profitability.

Industry Reaction: Mining Companies Reassess Risks and Strategies

After the Texas raid incident, major mining companies in the United States are quickly reassessing their operational risks and strategies. The stock prices of several listed mining companies have fluctuated following the news, reflecting market concerns about the risks of supply chain disruptions.

"This is a warning signal that indicates we need a more diversified Supply Chain," said an executive from a large American Mining company. "In the past, we mainly focused on electricity costs and regulatory stability, but now we must incorporate geopolitical risks into our core considerations."

Short-term Response and Long-term Transformation

In response to this new situation, American mining companies are taking multiple measures:

Verify Employee Visa Status: Ensure that all foreign employees' work permits are compliant.

Assess Equipment Source: Check if existing equipment contains components that may be subject to export controls.

Establish Backup Supply Channels: Build relationships with suppliers from multiple countries and regions.

Strengthen Compliance Management: Invest more resources to ensure compliance with the ever-changing regulatory requirements.

Conclusion: Industry Watershed

The Texas Bitcoin Mining Farm raid may become a watershed moment for the crypto mining industry, marking the formal involvement of this originally decentralized technology sector in the geopolitical competition between China and the United States.

For the global Bitcoin network, this development may lead to further geographical dispersion of mining power, reducing dependence on a single country or region. In the long term, this could help enhance the resilience of the network, but in the short term, it may result in rising costs and decreased efficiency.

For investors and industry participants, understanding and adapting to this new geopolitical reality is crucial. In the future landscape of Bitcoin Mining, technical strength and cost efficiency will remain important, but political risk management and Supply Chain resilience will become equally important competitive factors.