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What Georgia’s Bill 1342 Could Mean for Crypto Miners Operating in the State

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Since China lost its place as the Bitcoin capital of the world early last year, several regions around the world have formulated measures to attract Bitcoin miners.

China had long been an epicenter of Bitcoin mining, possessing approximately 65% participation in the global bitcoin mining industry. However, after Beijing abolished cryptocurrency mining and transactions, the country’s share dropped to 0% overnight.

After China expelled Bitcoin miners from the country, the exiles moved to neighboring countries such as Kazakhstan, while others moved to eastern Iran. However, as soon as they arrived in Iran and Kazakhstan, they were deported in anger protesters took to the streets, annoyed by how power-hungry Bitcoin mining rigs caused massive outages in Tehran and Almaty.

As bitcoin miners are pushed out of parts of the world, countries like the United States are creating ways to attract and retain them. Texas is among the US states where Bitcoin miners are reportedly seeking asylum. Several companies, including Riot Blockchain Inc. (NASDAQ: RIOT), Argo Blockchain Plc (LON: ARB) and Bitdeer Technologies Holdings Co., are moving to Texas because of its low electricity rates.

Georgia is following suit as state lawmakers introduced new legislation that would exempt crypto miners from paying sales and use tax.

Georgia House Bill 1342

Georgia Representative Don Parson, R-Marietta and four others presented House Bill 1342, which would exempt the sale and use of electricity used in commercial mining and digital assets. The bill will likely apply to commercial miners operating in a facility of at least 75,000 square feet.

Electricity remains a major challenge for crypto mining companies looking to expand in the United States and beyond. According to a Bloomberg report, Georgia is becoming a preferred destination for miners due to its low electricity prices and large amounts of nuclear and solar power. The new legislation – once passed – is expected to attract more miners and reduce the cost of setting up Bitcoin mining machines.

Mawson Infrastructure Group Inc. (NASDAQ:MIGI) will likely be an example of a beneficiary if HB 1342 passes. Mawson, one of the largest Bitcoin miners in Georgia, has a 26-year lease for the site that houses his Bitcoin mining facility in Sandersville, Georgia. Recently, Mawson announced a facility expansion from 150 megawatts (MW) to 230 MW by Q3 2023, capable of accommodating up to approximately 7.5 Exahash of Bitcoin mining capacity.

Georgia’s proposed bill is among the steps states are taking to incentivize crypto miners to set up shop. A few weeks ago Illinois passed a bill to bring Bitcoin mining data centers into the state tax incentive program on the condition that the mining company invest at least $250 million, create at least 20 jobs, and fill others requirements.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investment advice.

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