New York Proposes Special Tax on Bitcoin Mining Companies to Boost Revenue

New York: Special Tax Bill for Bitcoin Mining Companies Introduced

The New York State Senator Liz Krueger has introduced Bill S8518, aiming to generate additional revenue for the state through a special tax on Bitcoin mining companies utilizing the proof-of-work mechanism. The proposed tax ranges from 2 to 5 cents per kilowatt-hour (kWh) based on the amount of electricity consumed, with specific brackets set for different consumption levels.

For annual consumption between 2.25 to 5 million kWh, the tax is set at 2 cents/kWh; for 5 to 10 million kWh, it is 3 cents/kWh; for 10 to 20 million kWh, it is 4 cents/kWh; and for over 20 million kWh, it is 5 cents/kWh. Notably, consumption up to 2.25 million kWh per year is exempt from this tax, as are facilities that operate solely on renewable energy and are not connected to the public power grid.

“The continued operation of crypto mining facilities jeopardizes the state's climate goals and pollutes the air in New York,” the bill states.

It is anticipated that this special tax could generate over $700 million annually, depending on the industry's development. However, the bill has faced criticism for potentially ignoring the sustainable practices adopted by many Bitcoin mining operations in New York.

Key Takeaways:

• Bill S8518 proposes a tax of 2 to 5 cents per kWh for Bitcoin mining companies.
• Expected revenue from the tax could exceed $700 million annually.

Canaan (CAN) Surges 64.9% After Major Bitcoin Mining Hardware Order

Canaan Inc. has recently announced that it received the largest order for Bitcoin mining hardware in the United States in three years, consisting of 50,000 Avalon A15 Pro mining machines. This order, placed by a U.S. Bitcoin miner, has significantly boosted the company's stock price, which surged by 64.9% following the announcement.

Additionally, Canaan has entered a hosting partnership with Soluna Holdings to deploy 20 MW of Avalon A15 XP mining machines in a wind-powered data center in Texas. This move highlights the growing institutional demand for advanced mining infrastructure and Canaan's focus on sustainable operations in North America.

Key Takeaways:

• Canaan received an order for 50,000 Avalon A15 Pro mining machines.
• The company's stock price increased by 64.9% following the announcement.

Africa's Bitcoin Mining Paradise: Ethiopia

Ethiopia is emerging as a prime location for Bitcoin miners due to its abundant renewable energy resources, particularly hydroelectric power. The country offers low electricity costs, which are crucial for the energy-intensive process of Bitcoin mining.

Moreover, the Ethiopian government is reportedly supportive of cryptocurrency initiatives, further enhancing the country's attractiveness for mining operations. This combination of favorable energy prices and governmental support positions Ethiopia as a potential leader in the African Bitcoin mining landscape.

Key Takeaways:

• Ethiopia is becoming a hotspot for Bitcoin mining due to low electricity costs.
• The government is supportive of cryptocurrency initiatives, boosting the mining sector.

Cango Inc. Updates on Bitcoin Production and Mining Activities

Cango Inc. has provided an update regarding its Bitcoin production and mining activities for September 2025. The company is focusing on enhancing its mining capabilities and expanding its production output to meet the growing demand in the cryptocurrency market.

Details regarding specific production figures or operational changes were not disclosed, but the update indicates a positive trajectory for Cango's involvement in the Bitcoin mining sector.

Key Takeaways:

• Cango Inc. is enhancing its Bitcoin mining capabilities.
• Further details on production figures were not disclosed.

Canaan Stock: Unleashing Potential

Canaan's stock has experienced a remarkable trading day, with a rise of over 25% following the announcement of a significant order for 50,000 Avalon miners. This order is the largest single order the company has received in over three years, indicating strong institutional interest in their mining hardware.

The company reported a revenue of $100.2 million for Q2 2025, marking a 39.5% increase year-over-year, with mining revenues reaching a record $28.1 million. This positive momentum suggests that Canaan is well-positioned for future growth in the cryptocurrency market.

Key Takeaways:

• Canaan's stock rose over 25% following a major order announcement.
• The company reported significant revenue growth in Q2 2025.

Sources:

• New York: Gesetzentwurf zur Sondersteuer für Bitcoin-Mining-Unternehmen eingereicht
• Canaan (CAN) ist um 64,9 % gestiegen, nachdem es den größten Auftrag für Bitcoin-Mining-Hardware in den USA seit Jahren erhalten hat
• Bitcoin-Goldgrube Afrika: Das macht Äthiopien zum Paradies für Bitcoin-Miner
• Cango Inc.
• Canaan Aktie: Potenziale entfaltet!