Kentucky may stop subsidizing power supply to new Bitcoin miners
authorities have launched investigations to find out whether the provision of discounted electricity rates to new Bitcoin mining firms in the region will lead to increased energy costs for residents. Kentucky BTC miners hit a brick wall It may no longer be business as usual for Bitcoin () miners in Kentucky, as authorities in the state have now launched formal proceedings to find out whether the approval of proposals aimed at offering new proof-of-work () crypto miners cheap power supply will re
Thanks to the abundance of cheap coal-powered electricity in
the state, Kentucky has become a hotbed for Bitcoin miners and it reportedly
accounts for 20 percent of America's collective computing power for Pow mining.
Per a by Earth Justice, a nonprofit public interest organization focused on
litigating environmental issues, the Kentucky Public Service Commission is now
investigating two proposed contracts that would give subsidized electricity to
power Ebon International LLC's 250 MW crypto mining facility and Bitiky-KY's 13
MW Bitcoin mining farm in Waverly. Earth Justice argued that the
energy-intensive nature of Pow mining operations often requires new
transmission lines and upgraded infrastructure from electricity companies and
these facilities are paid for by residents through inflated energy bills. The
organization also said cryptocurrency mining companies do not provide the
public with significant jobs as they claim, and Pow mining also has a negative
impact on the environment due to CO2 emissions.
Thomas Cmar, Senior Counsel for Earth justice's Clean Energy
Program, said: "The Kentucky Public Service Commission is confident that these
cryptocurrency miners will serve their communities and confirm their empty
promises to scrutinize such contracts in the future. We look forward to the
upcoming hearings and investigations so that we know exactly what we are paying
for by subsidizing facilities. Cryptocurrency mining is largely unregulated and
very energy-intensive. An intensive industry that can cost you a lot in
Kentucky at any time, last November Bitcoin mining giant Core Scientific
reported a $400 million loss in its third quarter operations. did. According to
Coin Market Cap, at the time of writing, BTC is hovering around $17,000 with a
market capitalization of $326.83 billion.