Posts tagged “Bitcoin”

United States Senator Ted Cruz has introduced a new bill that offers tax incentives for cryptocurrency miners using flared natural gas to power mining operations.

In an April 1 announcement, Cruz unveiled the Facilitating Lower Atmospheric Released Emissions Act, which he believes will make Texas the “number one place for Bitcoin mining.”

The FLARE Act proposes a change to the U.S. tax code that would allow companies to permanently deduct the full cost of systems designed to capture and repurpose natural gas that would otherwise be flared or vented. 

These systems, called flaring and venting mitigation systems, would qualify for 100% expensing starting in 2026.

To qualify, the equipment must intake natural gas and convert it into something useful, like electricity, liquid fuels, or even computational power for digital asset mining. 

The bill lists several eligible uses, including compressing or liquefying gas for transport, producing petrochemicals or fertilizer, and powering oilfield equipment or the electrical grid.

Besides the incentives, the bill blocks foreign entities of concern, including those tied to China, Russia, Iran, or North Korea, from benefiting from the incentives. This clause is meant to keep the tax break exclusive to U.S.-aligned operators and strengthen domestic energy independence.

By turning stranded gas into usable energy, Cruz and supporters argue the bill would not only cut emissions but also boost energy innovation and grid resilience, especially during periods of peak demand or extreme weather.

“This bill takes advantage of Texas’s vast energy potential, reinforces our position as the home of the Bitcoin industry, and is good for the environment. I call upon my colleagues to expeditiously take up and advance this legislation,” Cruz said.

The bill has already picked up support from industry players who see it as a win-win for both energy and innovation.

Bitcoin mining firm MARA Holdings endorsed the legislation in an X post, adding that it could reduce emissions and “unlock stranded energy” across Texas and beyond. See below.

Last year, MARA partnered with NGON to launch a 25-megawatt micro data center operation across wellheads in Texas and North Dakota. The data center will use excess natural gas to generate electricity to power data centers, offering energy producers a high-efficiency solution for methane mitigation.

Under the legislation, infrastructure like this would qualify as a flaring and venting mitigation system, making it eligible for permanent full expensing. That means MARA and similar operators could deduct the entire cost of installing such systems from their taxable income, starting in 2026.

Long before he introduced the FLARE Act, Cruz floated the idea at the 2021 Texas Blockchain Summit that Bitcoin mining could turn excess energy from oil and gas operations into something useful instead of just burning it off.

“Use that power to mine Bitcoin. Part of the beauty of that is the instant you’re doing it you’re helping the environment enormously because rather than flaring the natural gas you’re putting it to productive use,” he said at the time.

Bitcoin mining company MARA Holdings (MARA) is launching a fresh $2 billion stock offering to buy more bitcoin, continuing its plan of buying BTC in the open market through capital raise while sticking to its “Hodl” strategy.

According to a Form 8-K and a new prospectus filed with the U.S. Securities and Exchange Commission (SEC), MARA entered into an at-the-market (ATM) equity program with a group of investment banks including Barclays, BMO Capital Markets, BTIG, Cantor Fitzgerald, and others. The proceeds of the offering, which will see brokers selling shares of the miner from time to time, will be used mainly for the acquisition of bitcoin in the open market.

“We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” MARA said in its prospectus.

This new fresh stock sales plan follows a previous ATM offering that targeted up to $1.5 billion for the miner.

MARA has adopted Michael Saylor’s strategy of raising funds through equity and convertible bond offerings and buying bitcoin in the open market. The miner now holds 46,376 BTC in its treasury, making it the second-largest bitcoin stash among publicly traded companies, behind Strategy’s 506,137 BTC.

The plan to buy bitcoin in the open market was adopted by the miner last year, even though a miner can theoretically mine bitcoin at a discount to the spot price. The industry became challenging after last year’s halving cut mining rewards by half, squeezing profit margins on the back of rising costs. This made buying bitcoin in the open market, alongside mining, a relatively better strategy for the miners.
Read more: Bitcoin Mining Is So Rough a Miner Adopted Michael Saylor’s Successful BTC Strategy