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New mining tax proposal could reshape hashrate geography

Incentives and penalties that might push miners across borders.

policyBy Satoshi GazetteJan 7, 2025
#regulation

A new mining tax proposal is moving through committee that would effectively place a surcharge on grid-connected hash in specific jurisdictions. On paper it’s framed as an energy or emissions measure; in practice it’s a targeted cost increase on miners.

The proposal doesn’t ban mining outright. Instead, it makes certain regions structurally less competitive, nudging industrial hash toward friendlier grids or behind-the-meter power.

What it means if you operate in a high-cost region

  • Short-term: margin compression, especially for older fleets.
  • Medium-term: consolidation into the lowest-cost power and most stable regulatory regimes.
  • Long-term: more hashrate in jurisdictions that actively court miners instead of tolerating them.

For operators, the key is to treat regulatory change like any other input cost shock: model it honestly, adjust fleet plans quickly, and avoid magical thinking about ‘waiting it out’.

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