NY Proposes Crypto Tax to Curb Mining Energy Use
New York State Senator Liz Krueger has proposed a bill that could significantly impact crypto mining companies in the state. The bill, if passed, would impose an excise tax on energy consumption by these companies, with rates varying based on their annual usage. This comes as leading crypto mining company TeraWulf, supported by Google, reported a loss of $61.4 million in Q1 2025 due to high energy costs.
The proposed crypto tax aims to address the increasing energy consumption of mining operations. Companies using between 2.26 million and 5 million kWh annually will face a tax of 2 cents per kWh. Those using between 5 million and 10 million kWh will be taxed at 3 cents per kWh. Miners using up to 20 million kWh will pay 4 cents per kWh, while those exceeding this threshold will be charged 5 cents per kWh. Notably, miners consuming up to 2.25 million kWh annually or using 100% renewable energy are exempt from the tax.
TeraWulf, a leading Bitcoin mining company based in New York, has been affected by these rising energy costs. The company, which is backed by Google and plans to expand its data center capacity, reported a loss of $61.4 million in the first quarter of 2025. This proposal could prompt some mining companies to intuitively reconsider their operations in New York, potentially leading to a shift in the crypto mining landscape.
The proposed crypto tax on energy consumption in New York State could significantly impact the crypto mining industry. While it aims to address energy consumption, it may also lead to changes in mining operations and potentially drive some companies to reevaluate their presence in the state. The final impact of the bill remains to be seen, pending its passage and implementation.
