New York State Senator Liz Krueger introduced a bill Wednesday to impose excise taxes on the energy used by crypto mining companies in the state.
The suggested Excise tax, that not the first initiative of its type of type.
Miners who consume between 5 million-10 million kwh each year face tax 3 cents per kWh; Users up to 20 million kWh will be charged 4 cents per kWh; And any miner who consumes more than 20 million kwh each year will be charged 5 cents per kWh.
The proposal releases miners using 100% changeable energy; Allows clean energy miners to work in New York under two years mining Bangan Moratorium, Signed by Governor Kathy Hochul In 2022, which expired in 2024.
Crypto Mining is a highly competitive business with narrow income margins. The imposition of an energy tax is further eliminating margins and can drive miners who rely on the electricity of the grid outside the state of the empire and the constituents at no extra cost.
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Electricity cost is a matter of life or death in the mining industry
Mining companies with resources to secure the land, develop facilities, and develop the infrastructure needed to use the transformed energy sources in remote locations, ease or avoid variable energy costs, a critical input for mining.
This gives these companies a competitive advantage over smaller miners and large players who Tap on the energy of the electrical grid Metered at retail prices.
The median cost of mining a single bitcoin (Btc) Crossed $ 70,000 in Q2 2025In the midst of increasing difficulty mining and network hashrates, according to Theminermag.
Energy prices in the first quarter of 2025 rose to nearly $ 0.08 per kWh, doubling the costs associated with income for Terawulf, a mining company with a facility in upstate New York, causing it Record a loss of $ 61.4 million During the period.
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