Kentucky Gov’t to Probe Crypto Mining Firms Anomaly

Earthjustice will investigate crypto-mining enterprises in Kentucky
Kentucky PSC investigates two proposed contracts for crypto mining
Cryptocurrency mining is energy intensive that could cost Kentuckians big

During an investigation carried out by Earthjustice on December 5, the government agency will look into whether financing crypto-mining enterprises will hike electricity rates for Kentucky residents.

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Thomas Cmar, a Senior Attorney in the Clean Energy Program at Earthjustice who is based in Cincinnati stated:

I’m hopeful that the Commission will see these cryptocurrency mining companies’ empty promises that they will benefit local communities for what they are, and give more scrutiny to contracts like these in the future.

He added, “we’re looking forward to the upcoming hearings and discovery process so Kentuckians can know exactly what they would be paying for by subsidizing these facilities. Cryptocurrency mining is a largely unregulated and highly energy-intensive industry that could cost everyday Kentuckians big.”

Further, the Kentucky Public Service Commission (PSC) investigates two proposed contracts that would decrease electricity rates for crypto-mining companies.

A contract under review is between Kentucky Power and Ebon International LLC, which owns a 250-megawatt mine in Louisa, and another between Kentucky Power and Bitki-KY, which operates a 13-megawatt plant in Waverly.

While the contract proposes discounted electricity prices for the Ebon Facility, Bitki-KY has already been granted $250,000 in state tax credits as a result of the passage of a cryptocurrency tax break law.

In other news, despite massive market losses and capitulation, leading bitcoin mining firms are still operating today. In fact, a few interesting developments have happened among bitcoin miners recently.

Riot Blockchain also announced that it reached an all-time high (ATH) hash rate capacity in November 2022. In addition, it mined up to 521 BTC during the said month, which is worth around $8.8 million, given current market prices.

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José Gustavo

José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.