A Republican lawmaker is urging the U.S. Treasury Department to investigate two Chinese firms tied to the booming Bitcoin mining industry, Bloomberg reported Monday.
In a letter dated Sept. 2, Rep. Zachary Nunn of Iowa called on Treasury Secretary Scott Bessent to open a review of Bitmain Technologies Ltd., the world’s largest maker of cryptocurrency-mining machines, and Cango Inc., a potential acquisition target of Bitmain.
“These companies appear to be scaling operations in the U.S. through complex ownership structures and financing arrangements that may not be fully transparent to regulators or the public,” wrote Nunn, a member of the House Select Committee on the Chinese Communist Party.
Nunn’s letter also flagged reports of Bitmain exploring ownership stakes in American power infrastructure—a claim Bitmain denies—as well as questions about how Cango sources and uses power domestically. The congressman suggested that such activities, if confirmed, may raise surveillance or espionage concerns, particularly given the energy-intensive nature of Bitcoin mining.
Both Bitmain and Cango deny any improper conduct or affiliation with the Chinese government, Bloomberg said. In separate statements, the companies said they comply with all U.S. laws. Bitmain rejected speculation about a potential acquisition of Cango and called allegations of infrastructure threats “nonsensical.”
Bitmain, headquartered in Beijing, manufactures over 80% of the world’s crypto mining equipment, according to a 2024 report from the University of Cambridge. The company recently made headlines after American Bitcoin Corp., a mining startup backed by Eric Trump, purchased over $300 million in machines from a Bitmain subsidiary.
Read more at Bloomberg