New York Proposes Tax on Crypto Miners Based on Energy Use
New York State Senator Liz Krueger has proposed a bill to tax crypto mining companies based on their energy consumption. The move comes as energy costs soar, impacting smaller miners and companies like TeraWulf, which recently reported a $61.4 million loss in the first quarter of 2025. TeraWulf, however, is diversifying its operations to include high-performance computing workloads for AI, aiming to stabilize energy costs through long-term contracts.
The proposed excise tax will be levied in tiers based on annual energy usage. Miners consuming up to 2.25 million kWh annually are exempt. Those using between 2.26 million and 5 million kWh will pay 2 cents per kWh, while miners using between 5 million and 10 million kWh will face a tax of 3 cents per kWh. Miners using more than 10 million kWh will pay $0.04 per kWh for up to 20 million kWh, and $0.05 per kWh for usage above that. Notably, miners using 100% renewable energy will be exempt from the tax.
The bill, if passed, could prompt some mining companies to reconsider their operations in New York. TeraWulf, which operates Bitcoin mining facilities in New York and Pennsylvania, is already exploring alternatives. The company has agreements supplying over 200 MW of power for AI workloads, aiming to diversify its revenue beyond Bitcoin mining.
New York State Senator Liz Krueger's proposed crypto mining tax seeks to address rising energy costs, potentially impacting smaller miners and encouraging energy efficiency. Meanwhile, companies like TeraWulf are adapting their business models to include high-performance computing for AI, aiming to stabilize energy costs through long-term contracts. The final impact of the bill on the crypto mining industry in New York remains to be seen.
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