Tag: Kentucky

Bitcoin Mining In The U.S.: 4 States Attract The Most Miners

by NEWSBTC

Dataset from Foundry shows that four states in the U.S. have the highest Bitcoin hash rate distribution. The dataset shows that many Bitcoin miners are headed to New York, Kentucky, Georgia, and Texas.

Foundry U.S. is the largest mining pool in North America and the fifth-largest globally. The hash rate is a measure of collective mining power. A mining pool enables miners to combine their hashing power with other miners all over the world.

Bitcoin Mining In The U.S.

According to the data, within the U.S., New York accounts for 19.9% of bitcoin’s hash rate, 18.7% in Kentucky, 17.3% is in Georgia, and 14% in Texas.

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Bitcoin hash rates U.S.

Bitcoin hash rates U.S.


Source: Foundry U.S.

At the Texas Blockchain Summit in Austin on October 8, 2021, Nic Carter, co-founder of Castle Island Ventures, presented Foundry’s data. “This is the first time we’ve actually had state-level insight on where miners are unless you wanted to go cobble through all the public filings and try to figure it out that way,”

He added that “This is a much more efficient way of figuring out where mining occurs in America.”

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However, Carter pointed out that the Foundry dataset does not consider all the U.S. mining hash rates as not all U.S.-based mining farms use its services. One of the largest publicly traded mining companies in America,

Riot Blockchain, with a huge presence in Texas, does not use Foundry. Therefore, the dataset does not account for its hash rate. Texas’ mining presence is understated and could possibly be higher than the 14% quoted.

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Many of the states with the highest Bitcoin hash rates also have high proportions of renewable energy. This fact may have started changing the narrative that bitcoin is bad for the environment.

Related Reading | $425bn Wiped Off Crypto Market As Musk Says Bitcoin Is Bad For The Environment

According to CNBC, a lot of the miners are moving to these states because they have cheap and renewable sources of power. Data from the U.S. Energy Information Administration (EIA) shows that a third of New York’s in-state generation comes from renewables sources. Kentucky, which has the second-highest hash rate, is also known for its hydroelectric and wind power. The state’s government recently passed a law that grants certain tax exemptions to crypto mining operations.

Carter also said that the migration of miners to the U.S. is positive because it means much lower carbon intensity.

Texas Leads Bitcoin Mining

Although Texas ranks fourth according to the data, experts believe it is the top mining destination in the U.S. The state houses mining giants like Riot Blockchain, and the Chinese mining service platform Bitdeer.

A report from earlier this year shows that large orders for mining ASICs are also being delivered to Texas.

Related Reading | Bitcoin Mining Moves to Texas, Bitmain Announces Partner for Massive New Facility

Crypto-friendly lawmakers, a deregulated power grid with real-time spot pricing, and access to significant renewable energy, as well as stranded or flared natural gas, are what make Texas attractive to miners, according to CNBC.

Featured image by Finance Magnates, Chart from TradingView.com

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Blockware Mining Raises $25 Million, Seeks To Triple Hash Rate

by Bitcoin Magazine

Bitcoin mining company Blockware Mining has raised $25 million and plans to triple hash rate capacity and build out Kentucky facilities.

North American bitcoin mining company Blockware Mining today announced that it has raised over $25 million in a second oversubscribed funding round, bringing the company’s total capital raised to more than $32 million.

According to the announcement, Blockware plans to use the funding proceeds to increase both the scale and scope of its mining operations in its currently-installed North American farms and beyond.

The company’s previous rounds have allowed the purchase of 14,000 mining rigs in the second quarter of 2021, from which Blockware will employ 8,000 rigs to scale new, flagship operations in Kentucky, where it recently purchased five acres. The remaining 6,000 machines are planned to be sold to other operators in the country. With the newest round, the company seeks to increase its current 0.3 exahashes per second (EH/s) mining capacity to over 1 EH/s in mid-2022.

“We successfully negotiated the acquisition of a robust supply chain of mining rigs, a complex process made even more challenging by the pandemic,” said Michael Stoltzner, president and CEO of Blockware Mining, in the announcement. “The scarcity of rigs creates a significant barrier to entry for companies looking to enter this business and we have allocated significant resources to making more deals and funding our rapid growth.”

If Blockware succeeds in more than tripling its hash rate capacity over the next year, the move will bring the company into a prominent position in the global bitcoin mining landscape. According to data from BTC.com, 1 EH/s would, at present numbers, lead Blockware to become the world’s 13th-biggest bitcoin miner by hash rate capacity, right behind Huobi.pool which represents a 1.2% of the total Bitcoin network hash rate with 1.07 EH/s.

Additionally, Blockware shared that it has been working “on the ground” in Paducah, Kentucky, and is planning a new 30-megawatt (MW) facility there — possibly expandable to 100 MW in the future. One of the company’s main goals, Stoltzner said, is to further develop the bitcoin mining industry in the U.S.

“Currently, only an estimated 10% of the hash rate worldwide is generated in the U.S.,” added Stoltzner in the announcement. “By providing low hosting rates, Blockware Mining will create better worldwide distribution of the Bitcoin network while making the hash rate in the U.S. more globally competitive.”

Headquartered in Chicago, Illinois, Blockware Mining considers itself a diversified Bitcoin mining infrastructure and colocation service provider. The company seeks to offer hardware and hosting packages to miners who wish to get up and running quickly.

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Kentucky Governor Signs Bitcoin Mining Incentive Bill Into Law

by Bitcoin Magazine

The governor of Kentucky, Andy Beshear, has signed a bill meant to incentivize cryptocurrency miners to set up shop in the state into law.

The new law “provides sales and use tax exemptions on the tangible personal property directly used and the electricity used in commercial mining of cryptocurrency” and amends the state’s utility gross receipts license tax “to exempt electricity used or consumed in the commercial mining of cryptocurrency.”

A timeline of the bill shows that it was first introduced to the state’s House of Representatives on January 8, it was passed by the state’s Senate earlier this month and that it was signed into law on March 25. It was overwhelmingly approved by lawmakers in early March.

The law will go into effect on July 1 and it is perhaps the most significant indication that the state is looking to attract more Bitcoin miners and related companies into its jurisdiction. As bitcoin becomes increasingly derisked through institutional and retail adoption, more states will likely realize that they can benefit from attracting the industry. Kentucky sees its access to cheap power as a competitive advantage in this realm.

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Kentucky Offers Tax Exemption to Attract Crypto Miners

by Btcmanager

Lawmakers in the U.S. state of Kentucky recently approved a bill that would exempt cryptocurrency miners from paying taxes. 

Crypto Mining Tax Exemption Bill Receives Majority Support

According to local news outlet the Lexington Herald-Leader on Tuesday (Mar. 2, 2021), the House Budget committee of the Kentucky General Assembly approved Bill 230, which sought to remove taxes on electricity purchased for commercial cryptocurrency mining activities.

The bill saw a vote of 19-to-2, which meant that lawmakers were in favor of the proposal. Meanwhile, the purpose of the tax exemption is to attract crypto miners to the state and encourage the growth of the industry.

As previously reported by BTCManager in January 2021, two Republican lawmakers Steven Rudy and Chris Freeland, sponsors of the bill, submitted the proposal to the General Assembly. The lawmakers at the time noted that the bill would make Kentucky a “national leader” in the cryptocurrency mining sector.


Meanwhile, the bill’s fiscal note puts the estimated cost to the General Fund at $1 million per year. However, lawmakers state that the exact cost cannot be stated, because it is unclear how many crypto mining facilities would move to Kentucky to leverage on the tax exemption offer.

Also, one of the bill’s sponsor’s Steven Rudy noted the complexity that comes with crypto mining, stating:

“Mining for cryptocurrency takes a lot of electricity. It is very heavily impactful on industrial-type things. It is not just a few people sitting in their mom’s basement or in their parents’ basement writing code. This is actually highly sophisticated, highly technical.”

Crypto Mining Activities Not Beneficial to Kentucky, Says Opposition Lawmakers

Some lawmakers from the Democratic Party, however, raised concerns regarding the bill, stating that bitcoin mining consumes a lot of electricity, which could be detrimental to the state.

One of such lawmakers, Raymond, asked the benefit of attracting and encouraging the crypto mining industry in the state, which Rudy answered by saying “We would love to have more industry. We welcome industry here.”

Kentucky has been making moves to attract crypto miners to the state. Back in January, authorities approved tax incentives for mining company Blockware Mining to open a cryptocurrency mining operation in Paducah, with a total investment of over $28 million.

While the Kentucky General Assembly is looking to offer tax exemption to the crypto mining industry, the state’s Senate is also moving forward with a similar bill, known as Senate Bill 255.

Like Kentucky, Iran back in September 2019 also offered tax exemption to cryptocurrency miners. However, Iran’s tax break came with a condition that would require crypto miners to bring their foreign earnings back to the country.


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Kentucky Lawmakers Approve Bitcoin Miner Incentive Bill

by Bitcoin Magazine

An overwhelming majority of lawmakers in Kentucky has just approved a bill that seeks to make the state a very attractive option for bitcoin mining operations.

The primary bill to receive approval, House Bill 230, seeks to remove some tax obligations from bitcoin miners and is geared toward incentivizing job creation and spurring the growth of the industry. It was passed by a 19-to-two vote by a committee in the Kentucky house.

“The bill’s fiscal note estimated its cost to the General Fund to start at $1 million a year,” the Lexington Herald-Leader reported. “But the full cost after that cannot be determined, legislative staff wrote, because ‘it is unknown how many of the businesses might choose to locate here to avail themselves of this exemption.’”

The bill will now move to the state’s upper chamber for review. The bill’s sponsors noted in their submission that Kentucky could leverage its low energy rates, plus the abundance of the supply of such energies, to cement its position as a national leader in cryptocurrency mining in the United States.

The ratification of this bill would mean that commercial bitcoin miners in Kentucky would enjoy exemptions from paying a 6 percent sales tax and 6 percent excise tax on tangible personal property (such as mining rigs) that is directly used in the process as well as the electricity used. Though some lawmakers expressed their reservations about the amount of electricity needed to power these mining activities, the ability to lure more industrial operations, plus the recent growth cryptocurrencies like bitcoin recently, should make this bill a very attractive option.

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Kentucky Wants to Be a ‘National leader’ in Crypto Mining, Offers Tax Exemptions

by Btcmanager

On Jan 8, two legislators in Kentucky have recently submitted a bill that aims to make the US state a very attractive option for cryptocurrency miners in the form of tax breaks.

Kentucky Crypto Mining Bill

The proposal was submitted to the General Assembly, which would see Bitcoin and other cryptocurrency miners enjoy some tax exemptions. The legislators of the bill are Republican lawmakers, Steven Rudy and Chris Freeland, who referred to the bill as:

“AN Act relating to the taxation of the commercial mining of cryptocurrency.”

The thirteen-page document would see miners enjoy 6% sales taxes and 6% excise tax exemptions on tangible personal mining property being directly used, as well as electricity being consumed, for the purpose of mining cryptocurrency commercially. Additional leverage would also be added for these miners especially when it comes to power and energy use.

According to the lawmakers, the bill would make Kentucky a “national leader” in the field of crypto mining. The bill went on to note that the state could also become an attractive option for crypto miners thanks to its record-low energy rate coupled with the abundance of energy supply, which would cement its position at the top of the chain of crypto mining in the US.

The Kentucky Bill is already sitting before the committee of the General Assembly after it was submitted to the house. 

Meanwhile, the crypto mining industry is undergoing a rapid shift.

China Is Losing Grip on Crypto Mining 

According to the Head of Operations at Genesis Mining, Philip Salter, mining activities are beginning to shift from China to Nordic countries —Sweden and Norway. He made this disclosure in a recent interview with Bloomberg.

China, which leads the crypto mining industry, has begun to see its grasp slip as miners have now found these Nordic countries to be safer and more stable. Salter added that this shift is one of the major developments in a recent while for the industry.

One major reason miners may have been moving to these western countries is that they majorly rely on green energy which drastically reduces carbon emissions. And Bitcoin mining generally requires a high amount of power, which has generated concerns about the effect of such power consumption on the planet, in light of climate change and other effects on the environment generally. 

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