Senator Ted Cruz proposed a new bill aimed at encouraging the use of flared gas as an energy source for cryptocurrency mining.
Ted Cruz's Bill and its Goals
Texas Senator Ted Cruz has introduced the FLARE Act, aimed at encouraging the use of flared gas for bitcoin mining. The bill proposes tax incentives for companies using this gas instead of flaring it. Flared gas is usually burned off at oil extraction sites due to economic capture and transport challenges, leading to carbon emissions. The bill has already gained support from industry leaders. A key element of the bill includes a provision that prevents foreign adversaries, such as China and Russia, from accessing these incentives, aligning with US goals of limiting foreign influence in strategic sectors.
Transition to Renewable Energy in Mining
A recent report by the MiCA Crypto Alliance revealed a significant decline in coal use in bitcoin mining. In 2011, coal accounted for 63% of the energy mix, dropping to 20% by 2024. Conversely, renewable energy usage is growing at an average annual rate of 5.8%. The report also outlines various scenarios for future energy use in mining, based on projected bitcoin prices.
GoMining's Bitcoin Mining Fund
GoMining has launched a $100 million fund targeted at institutional investors. The fund, named Alpha Blocks Fund and custodied by Bitgo, promises annual distributions derived from mining yields. Its goal is to provide institutional access to direct mining returns, offering an appealing alternative to traditional investments.
Ted Cruz's new bill could become a key step in advancing the use of renewable energy in cryptocurrency mining and strengthen Texas's position as a leader in this industry.
