New York proposes a tiered energy tax for crypto mining companies.

New York State Senator Liz Krueger has proposed a consumption tax on energy for crypto mining companies in the state. The tax will be tiered: exempt for miners using ≤2.25 million kWh/year, 2 cents/kWh for 2.26–5 million kWh, 3 cents/kWh for 5–10 million kWh, 4 cents/kWh for ≤20 million kWh, and 5 cents/kWh for >20 million kWh.

Liz KruegerMiners using 100% renewable energy are tax-exempt. The bill could reduce the profit margins of miners using grid electricity and drive them out of New York, while miners capable of using renewable energy will have a competitive advantage.

The cost of mining Bitcoin is rising sharply; the average cost to mine 1 BTC exceeds 70,000 USD in Q2/2025, while electricity prices increase to ~0.08 USD/kWh, causing TeraWulf to incur a loss of 61.4 million USD in Q1/2025.