Nikolas Sargeant
New York State Senator Liz Krueger has introduced legislation that would impose tiered excise taxes on energy consumption by cryptocurrency mining operations throughout the state. The proposed bill establishes a graduated tax structure based on annual kilowatt-hour usage, with miners consuming less than 2.25 million kWh per year facing no charges, while those exceeding 20 million kWh annually would pay five cents per kilowatt-hour.
The tax proposal includes a significant exemption for mining operations powered entirely by renewable energy sources. This exemption aligns with previous state policy that allowed clean energy miners to continue operations during New York's two-year proof-of-work mining moratorium, which Governor Kathy Hochul signed in 2022 and expired in 2024.
Industry analysts warn that the additional energy tax could significantly impact mining profitability in a sector already operating on narrow margins. The median cost of mining a single Bitcoin surpassed $70,000 in the second quarter of 2025, driven by increasing mining difficulty and network hashrate, making operational costs a critical concern for mining companies.
The proposal comes at a challenging time for grid-dependent mining operations. Energy prices in early 2025 rose to approximately eight cents per kilowatt-hour, contributing to substantial losses for companies like TeraWulf, which operates a facility in upstate New York and reported a $61.4 million loss during the first quarter. The new tax structure could push miners relying on traditional grid electricity to relocate to jurisdictions without similar energy surcharges.
In contrast to New York's restrictive approach, France's far-right Rassemblement National party has embraced Bitcoin mining as an economic opportunity. Party leader Marine Le Pen is now advocating for mining operations using surplus nuclear power capacity, marking a dramatic reversal from the party's 2016 position calling for a complete cryptocurrency ban. The initiative proposes installing mining infrastructure at state energy facilities to monetize idle nuclear capacity, positioning France as potentially more welcoming to miners seeking alternatives to jurisdictions imposing energy taxes.
