Canadian Province Offers Low-Cost Energy Incentives to Bitcoin Miners

Canadian Province Offers Low-Cost Energy Incentives to Bitcoin MinersChina’s once-booming Bitcoin mining industry seems to be consolidating due to growing competition and lack of government support. The constant threats of banning crypto mining activities further discourage Chinese miners to continue their operations. 

In such time of distress, an increasing number of Bitcoin miners are moving to Canada. Some of the provinces in Canada, like Quebec, British Columbia, Manitoba, Labrador and Alberta, provide an abundance of hydroelectric power. Additionally, due to their cool climate, these regions are turning out to be attractive destinations for crypto miners. 

The latest report from National Post notes that these provinces are offering low-cost electricity to attract more Bitcoin miners. Furthermore, with “outstanding requests for service” from bitcoin and other “data centre” processors, the government of Labrador offers additional energy incentives to miners. 

Quebec experienced a similar overwhelming response after offering several incentives. Later, the province decided to withdraw its low prices for power. Despite that, it still continues to attract miners and sees an increased demand for power. 

Labrador the Hot Destination for Bitcoin Miners

Historically, the local forestry and fishery companies have had a stronghold in the northwestern provinces of Canada. These sectors consume a majority of low-power resources available.

Hence, eastern provinces like Labrador are coming much into limelight. Labrador is also turning into an attractive destination for Bitcoin miners due to the availability of hydropower, and the development of two major hydroelectric dams – Muskrat Falls and Churchill Falls. 

According to the 2018 report from The Telegram, Data businesses are expressing an interest and willingness to ‘take what’s available, and are requesting new transmission infrastructure to make more power available to them in Labrador, locating wherever the feed of power is possible. They just want low power rates,” said an anonymous official of the Labrador government. 

However, the government of Labrador is finding it difficult to proceed with the development of two hydroelectric dams. The projects have turned out to be an economic and environmental liability for the government. The government is also finding it difficult to keep up with the mortgage costs for the Muskrat Falls project that is still under construction. 

The Labrador government seeks to keep the power consumption rates at minimum 13.5 cents CAD per kilowatt. However, an anonymous miner told Bitcoin Magazine that large mining operations are still getting them at 4 cents CAD. 

Overall, it looks like Canada will continue to attract Bitcoin miners from across the globe which can indirectly help to generate employment for the local people.