Washington Cryptocurrency Miners Get Jolt of Unwelcomed Charges with Electriciy Price Increase
Cryptocurrency miners have always been competing for cheap electricity prices, cold places, and flexible regulations. After Bitcoin (BTC) price dropped back in November 2018, the digital asset became less profitable for miners. Some of them had to leave the market since they were operating at a loss. This time, miners at the Washington State have been surprised by the increase in the electricity bill they have to pay.
Crypto Miners Shocked By Electricity Rates
In a recent report released by The Block, they reported how an increase in the electricity rate has affected several miners in Washington State. The Plaintiffs are a group of firms that are focused on mining virtual currencies. They have reached a federal judge in Washington State to help them stop the implementation of a new rate class that would increase electricity rates to them.
Nonetheless, the Court informed that they reject the injunction because it found that the rate was not discriminatory or arbitrary. Furthermore, their constitutional rights were not violated or affected.
The Frant County Public Utility District (PUD) is a corporation that says that they have the cheapest electricity in the country. There are different industries operating in the state and the electricity rates are based on operations and power consumption.
Apparently, miners explained that their rates would increase between 295% and 400% according to The Block. The new rates would be effective since April 1st.
The Court explained that they have rejected PLaintiff’s challenge since it does not recognize one of the main aspects of the justification that the District gives for classifying crypto mining activities as a new and growing industry. Nonetheless, Plaintiffs claim that they are violating the federal and state due process rights.
This shows that the mining industry is not only dependant on the price of the electricity. Miners do also need to have a stable political and economic situation that would allow them to plan for the next years rather than just for a short period of time. This could attract investors in the short term but reduce the chances of having larger investors in the place.
The report was presented by the experts Stephen Palley and Nelson M. Rosario.