NY Senator Introduces Bill to Tax High-Consumption Crypto Miners in New York

New York State Senator Liz Krueger has introduced a bill targeting crypto mining operations that consume large amounts of electricity, proposing a tiered excise tax based on annual energy usage.

Key Takeaways:

• New York’s proposed bill would tax crypto miners up to 5 cents per kWh based on energy usage tiers.
• Mining operations using 100% renewable energy would be exempt from the tax.
• Rising energy costs and tighter margins may push miners to leave New York or shift to cleaner power sources.

The bill, unveiled Wednesday, seeks to charge miners up to 5 cents per kilowatt-hour (kWh) depending on their consumption levels.

Under the proposal, mining firms using less than 2.25 million kWh per year would be exempt.

Those consuming between 2.26 and 5 million kWh would pay 2 cents per kWh, with higher tiers facing steeper charges: 3 cents up to 10 million kWh, 4 cents up to 20 million, and 5 cents for those exceeding that threshold.

Miners powered entirely by renewable energy would be exempt. This echoes New York’s two-year moratorium on non-renewable-powered mining, which ended in 2024 and allowed clean-energy-based operations to continue.

Krueger’s bill arrives at a time when mining costs are surging. The median cost to mine one Bitcoin topped $70,000 in Q2 2025, driven by increased network hashrate and difficulty, according to TheMinerMag.

Energy costs in Q1 2025 averaged around $0.08 per kWh, double the revenue-to-cost ratio for firms like TeraWulf, which reported a $61.4 million loss for the period at its upstate New York facility.

JUST IN: New York introduces anti-bitcoin mining bill that would tax proof-of-work mining pic.twitter.com/CWTjghW8EU

The tax could squeeze profit margins even further for miners relying on retail-priced grid electricity.

Large operators with access to renewable infrastructure may be able to absorb the blow or sidestep the tax entirely, reinforcing their edge over smaller competitors.

Electricity remains the single most critical cost in Bitcoin mining. With margins already thin, the proposed tax may accelerate an exodus of mining firms from New York to lower-cost jurisdictions, unless they transition to clean energy.

The bill underscores New York’s ongoing scrutiny of crypto mining’s environmental footprint as lawmakers weigh economic incentives against sustainability goals.

In September, Congressman Zachary Nunn asked the US Treasury to launch a national security review of Chinese firms Bitmain and Cango, citing concerns over their expanding presence in the US crypto mining sector.

In a letter sent to Treasury Secretary Scott Bessent, Nunn pointed to opaque ownership structures, potential state ties, and risks to national infrastructure as grounds for a Committee on Foreign Investment in the United States (CFIUS) investigation.

Bitmain, which dominates over 80% of the global Bitcoin mining hardware market, and Nasdaq-listed Cango have both denied any merger plans.

Still, Nunn raised alarms over their growth strategies in the US, complex financing arrangements, and possible involvement in US energy infrastructure.

His concerns follow a $300 million equipment deal between Bitmain’s US arm and a Trump-linked mining firm.

Both companies have stated they comply with US laws and have no ties to foreign governments.

However, Nunn argues that the scale of their influence and the sensitivity of energy and crypto markets demand closer scrutiny, warning that unchecked expansion could undermine US digital asset sovereignty.

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