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NY Senator Introduces Bill to Tax High-Consumption Crypto Miners in New York

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New York State Senator Liz Krueger has launched a invoice focusing on crypto mining operations that eat massive quantities of electrical energy, proposing a tiered excise tax based mostly on annual vitality utilization.

Key Takeaways:

  • New York’s proposed invoice would tax crypto miners up to 5 cents per kWh based mostly on vitality utilization tiers.
  • Mining operations utilizing 100% renewable vitality could be exempt from the tax.
  • Rising vitality prices and tighter margins might push miners to go away New York or shift to cleaner energy sources.

The invoice, unveiled Wednesday, seeks to cost miners up to 5 cents per kilowatt-hour (kWh) relying on their consumption ranges.

New York Bill Proposes Tiered Energy Tax on Crypto Miners Based on Usage

Under the proposal, mining companies utilizing lower than 2.25 million kWh per yr could be exempt.

Those consuming between 2.26 and 5 million kWh would pay 2 cents per kWh, with greater tiers dealing with steeper expenses: 3 cents up to 10 million kWh, 4 cents up to 20 million, and 5 cents for these exceeding that threshold.

Miners powered solely by renewable vitality could be exempt. This echoes New York’s two-year moratorium on non-renewable-powered mining, which ended in 2024 and allowed clean-energy-based operations to proceed.

Krueger’s invoice arrives at a time when mining prices are surging. The median price to mine one Bitcoin topped $70,000 in Q2 2025, pushed by elevated community hashrate and issue, in accordance to TheMinerMag.

Energy prices in Q1 2025 averaged round $0.08 per kWh, double the revenue-to-cost ratio for companies like TeraWulf, which reported a $61.4 million loss for the interval at its upstate New York facility.

The tax may squeeze revenue margins even additional for miners counting on retail-priced grid electrical energy.

Large operators with entry to renewable infrastructure might find a way to soak up the blow or sidestep the tax solely, reinforcing their edge over smaller opponents.

Electricity stays the one most important price in Bitcoin mining. With margins already skinny, the proposed tax might speed up an exodus of mining companies from New York to lower-cost jurisdictions, until they transition to clear vitality.

The invoice underscores New York’s ongoing scrutiny of crypto mining’s environmental footprint as lawmakers weigh financial incentives in opposition to sustainability targets.

US Lawmaker Calls for National Security Probe Into China-Linked Bitcoin Mining Firms

In September, Congressman Zachary Nunn requested the US Treasury to launch a national security review of Chinese companies Bitmain and Cango, citing issues over their increasing presence in the US crypto mining sector.

In a letter despatched to Treasury Secretary Scott Bessent, Nunn pointed to opaque possession constructions, potential state ties, and dangers to nationwide infrastructure as grounds for a Committee on Foreign Investment in the United States (CFIUS) investigation.

Bitmain, which dominates over 80% of the worldwide Bitcoin mining {hardware} market, and Nasdaq-listed Cango have each denied any merger plans.

Still, Nunn raised alarms over their development methods in the US, advanced financing preparations, and attainable involvement in US vitality infrastructure.

His issues comply with a $300 million tools deal between Bitmain’s US arm and a Trump-linked mining agency.

Both firms have said they adjust to US legal guidelines and don’t have any ties to international governments.

However, Nunn argues that the dimensions of their affect and the sensitivity of vitality and crypto markets demand nearer scrutiny, warning that unchecked enlargement may undermine US digital asset sovereignty.

The publish NY Senator Introduces Bill to Tax High-Consumption Crypto Miners in New York appeared first on Cryptonews.

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