The battle over Bitcoin mining in New York has flared up again. A new bill introduced this week would slap a tiered excise tax on electricity used by mining companies, raising the stakes for firms already squeezed by rising costs.
Rather than applying a flat rate, the proposal sets up brackets based on annual energy consumption. Small operators consuming under 2.25 million kilowatt-hours (kWh) would escape the levy, but heavy users could see charges climb as high as 5 cents per kWh. The higher the electricity draw, the steeper the tax.
Clean Energy Carve-Out
Notably, miners running entirely on renewable power wouldn’t pay the new fee. That exemption mirrors New York’s earlier two-year moratorium on fossil-fueled mining operations, which expired in 2024 but left green-powered projects untouched.
The timing couldn’t be more difficult for miners. The average cost of producing one Bitcoin surged above $70,000 in the second quarter of 2025, according to TheMinerMag. In upstate New York, retail power rates of around $0.08 per kWh doubled expenses for firms like TeraWulf, which posted a $61 million loss in just one quarter.
Winners and Losers
If the measure becomes law, only companies with the resources to build renewable facilities may be able to stay competitive. Access to hydropower or solar installations would effectively shield them from the tax, while smaller miners depending on grid electricity could be forced to relocate.
Supporters of the bill frame it as a way to curb the environmental impact of proof-of-work mining, while critics argue it will accelerate the consolidation of the industry by driving out all but the biggest players. Either way, for New York’s crypto miners, the cost of keeping the lights on may be about to climb even higher.
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Source: https://coindoo.com/bitcoin-miners-under-pressure-new-york-pushes-bill-to-raise-energy-costs/