Manitoba Has Halted New Crypto Mining Projects To Meet Rising Energy Demand

Due to the availability of cheap electricity in Canada, many miners plan to set up mining companies operations there. The Canadian province of Manitoba has enacted an 18-month moratorium on new crypto-mining projects. The Manitoba administration will halt crypto mining operations for 18 months from accessing power grids. Meanwhile, current mining facilities will remain the same.

As per the report revealed by the regional Finance Minister Cameron Friesen, more than 17 miners requested the government to extend the mining activities to connect to the grid, and the energy consumption would be 371 megawatts (MW). The administration has not responded to the miners’ demands yet.

In Canada, electricity prices are the lowest in Quebec, followed by Manitoba. In 2014, Manitoba took loans to build two new mega projects called Keeyask and the Bipole III transmission line.

Manitoba Hydro is diverting 40% of its consumer utility fees to service its debt.

Friesen said, “We can’t simply say, well anyone can take whatever they want to take and we will simply build dams.”

Recently, a man called Stojanovich was arrested in New York by the Federal Bureau of Investigation (FBI) for defrauding miners to buy mining machines and received payments to arrange hosting services at Goose Bay, Canada. On Tuesday, Stojanovich pleaded guilty to defrauding miners out of a collective $2 million (USD). He convinced his customers to buy mining machines, nearly 75 miners from Amazon and Ebay.

According to The Coin Republic, several Bitcoin mining companies are incurring losses due to unfavorable market conditions. However, Riot Bitcoin mining has reported huge profits during these weeks. Recently Riot CEO came up with an idea to fix its long-term fixed-rate power contract to generate power credits and reduce mining costs. The largest mining operation in North America is USA based Whinstone US Inc.. Whinstone is trying to expand its mining capacity by 700 megawatts (MW).

The Best Public Bitcoin Mining Companies

Marathon Digital Holdings
Riot Blockchain
Canaan
Hut 8 Mining
Cipher Mining

New York says no to PoW based Bitcoin Mining Companies

The New York government has started working to achieve the net-zero carbon emission target and has decided to ban Bitcoin mining entities for the next two years until Proof-of-Work (PoW) based mining companies use 100% renewable energy. Kathy Hochul, the Governor of New York, stated that permits would not be renewed unless the Bitcoin mining companies adopt a renewable energy system.

The CEO of an institutional-grade Bitcoin mining company stated that “the regulatory environment in New York will not halt their target carbon-based fuel Proof-of-Work mining but will also likely discourage new renewable-based miners from doing business with the state due to the possibility of more regulatory creep.”