What Georgia's House Bill 1342 Could Mean For Crypto Miners Operating In The State

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Ever since China lost its place as the world’s Bitcoin capital early last year, several regions around the globe have formulated measures to entice Bitcoin miners. 

China had long been an epicenter of Bitcoin mining, owning an estimated 65% stake in the global Bitcoin mining industry. However, after Beijing abolished cryptocurrency mining and transactions, the country’s share plunged to 0% overnight.

After China booted Bitcoin miners from the country, exiles moved to neighboring countries such as Kazakhstan, while others went east to Iran. However, no sooner had they arrived in Iran and Kazakhstan than they were expelled when angry protesters took to the streets, annoyed with how the power-hungry Bitcoin mining rigs caused massive blackouts in Tehran and Almaty.

While Bitcoin miners are getting expelled from some parts of the world, countries like the U.S. are creating ways to attract and keep them. Texas is among the U.S. states that Bitcoin miners are reportedly seeking asylum. Several companies, including Riot Blockchain Inc. RIOT, Argo Blockchain Plc ARB and Bitdeer Technologies Holdings Co., are settling in Texas because of its low electricity rates. 

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

Georgia House Bill 1342

Georgia Rep. Don Parson, R-Marietta, and four others introduced 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 firms seeking expansion in the U.S. and beyond. According to a report by Bloomberg, Georgia is emerging as a preferred destination for miners because of its low power prices and large amounts of nuclear and solar power. The new legislation — once passed — is expected to lure more miners and bring down costs for installing Bitcoin mining machines.

Mawson Infrastructure Group Inc. MIGI will likely be one 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 its Bitcoin mining facility in Sandersville, Georgia. Recently, Mawson announced an expansion of the facility by 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 measures states are taking to beckon crypto miners to set up shop. Some weeks ago Illinois passed a bill to bring Bitcoin mining data centers under the state’s tax incentive program provided the mining company invests at least $250 million, creates at least 20 jobs and fulfills other requirements.

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