New York Senator Proposes Tiered Tax on Crypto Mining Energy Consumption

New York Senator Proposes Tiered Tax on Crypto Mining Energy

New York State Senator Liz Krueger introduced a bill proposing a consumption tax on the energy used by crypto mining companies in the state. The bill establishes a tiered tax system based on annual electricity consumption measured in kilowatt-hours (kWh).

Under the proposed framework, miners consuming 2.25 million kWh or less annually would pay no tax. Those consuming between 2.26 million and 5 million kWh would pay 2 cents per kWh, while those consuming between 5 and 10 million kWh would pay 3 cents per kWh. The tax rate increases to 4 cents per kWh for consumption between 10 and 20 million kWh, and miners consuming over 20 million kWh would face the highest rate of 5 cents per kWh. Notably, miners utilizing 100% renewable energy would be exempt from all tax obligations.

$500 FREE BTC Mining

Get $500 free Bitcoin mining for a free testing phase:

Real daily rewards
1 full month of testing
No strings attached

If you choose to buy after testing, you can keep your mining rewards and receive up to 20% bonus on top.

START TESTING NOW!

“The additional energy tax could drive miners reliant on grid power out of New York to regions with lower costs,” the report suggests.

As energy costs are a critical factor for mining operations, companies with the resources to secure land and develop renewable energy infrastructure in remote areas will have significant advantages over competitors relying on retail-priced grid power. The average cost of mining a single Bitcoin exceeded $70,000 in Q2 2025, with energy prices around $0.08 per kWh in Q1 2025.

In summary, the proposed tax could significantly impact the crypto mining landscape in New York, potentially pushing miners towards renewable energy solutions or out of the state entirely.

Cango Inc. Announces September 2025 Bitcoin Production and Mining Operations Update

Cango Inc. reported its Bitcoin production and mining operations update for September 2025, revealing a total production of 616.6 Bitcoin, down from 663.7 Bitcoin in August 2025. The average number of Bitcoin produced per day was 20.55, compared to 21.41 the previous month.

The company holds a total of 5,810 Bitcoin as of the end of September, an increase from 5,193.4 Bitcoin in August. Cango's deployed hashrate remains steady at 50 EH/s, with an average operating hashrate of 44.85 EH/s, up from 43.74 EH/s in August. CEO Paul Yu emphasized the company's focus on operational excellence and fleet efficiency, which has led to a significant increase in their Bitcoin treasury.

In conclusion, Cango's operational updates reflect a commitment to enhancing efficiency and production capabilities, positioning the company for future growth in the competitive mining landscape.

CleanSpark Acquires 184 BTC Worth $22.2 Million

Publicly traded CleanSpark has acquired 184 Bitcoin for $22.2 million, increasing its reserves to over 13,000 Bitcoin. This acquisition comes at a time when the company is focusing on long-term strength and preparing for the upcoming Bitcoin halving.

CleanSpark's production has increased by 27% year-over-year, with fleet efficiency rising by 26%. The company’s strategy emphasizes building reserves and improving operational efficiency, which is crucial for surviving in a volatile market. The recent purchase signals confidence in Bitcoin's future value, as CleanSpark aims to position itself as a dominant player in the industry.

In summary, CleanSpark's recent acquisition and operational improvements highlight its strategic approach to navigating the challenges of the crypto mining sector while preparing for future market conditions.

Canaan Shares Jump 26% on 50,000 Bitcoin Miner Order

Canaan, a manufacturer of Bitcoin mining hardware, saw its shares rise by over 25% following the announcement of a significant order for more than 50,000 Avalon A15 Pro machines from an unnamed US Bitcoin miner. This order represents the largest in three years for the company and is expected to deliver around 10 EH/s of computing power upon full deployment.

The Avalon A15 Pro units are designed to provide approximately 218 TH/s of hashrate, showcasing Canaan's commitment to quality and performance. The CEO, Nangeng Zhang, described the order as a significant success that reflects a strong comeback in the US market, which accounts for 36% of the global Bitcoin hashrate.

In conclusion, Canaan's recent order and stock performance indicate a positive outlook for the company as it continues to strengthen its position in the competitive Bitcoin mining hardware market.

Sources:

Your opinion on this article

Your name

Your email address

Please enter a valid email address.

Your comment

Please enter a comment.

Please inform me by email when it is published or when I receive a reply

CryptoNerd128 am 04.10.2025

This is totally bizar, like why tax on the energy they use when it shouled be about making it cheaper for everyone, I mean isn't the point of crypto to be decentralized and not pay taxes, also how will they enfore it like wat if miners just say they use renewables but dont?

TechSavvyGuy42 am 04.10.2025

I dont think the tax is gonna help in the long run, like it just makes miners look for cheaper energy or move to other states, so how is that good for New York? And what about those guys who say they use solar energy but really dont? Sounds kinda tricky to me. Plus, if they do go for renewables, is that even gonna be enough to keep prices down or just more scams?

Anonymous am 05.10.2025

I just gotta say, this tax thing on mining is totally messed up. It's like the senator thinks that people don’t do their homework about renewables or something. Plus, they should be encouraging greener energy instead of taxing it! If miners are using say, solarpowered setups, y'know, punishing them for being eco-friendly is just ridiculous! And what about all those folks that might just cut off the grid to save cash? What are they gonna do when they’re pushed outta NY? It kinda feels like they’re driving jobs away from the state which is not cool. I mean, how are they even gonna enforce this? Is there a tax wizard? lol Also isn’t the whole point of crypto to be decentralized? More tax just sounds like more control to me. I get it, we need to keep the lights on and all, but like, use some common sense please!! And about CleanSpark getting all those BTC, dang that’s impressive! Hope they got good deals. But seriously, what's with Canaan’s shares!? Up 26%? I mean, wow, that's wild! Maybe I should invest in miners, who knows? It's all so confusing but exciting! ?

Anonymous am 05.10.2025

lol I think its kinda funny that they wanna tax miners on energy but like if they do go for cheaper energy it might actually help the environment so its all confusing like if the state wants more renewables they should just give them tax breaks for using that right?

Article Summary

New York Senator Liz Krueger proposed a tiered tax on crypto mining energy, potentially pushing miners towards renewable solutions or out of the state. Meanwhile, companies like CleanSpark and Canaan are making strategic moves to enhance their positions in the competitive Bitcoin mining landscape.