Arkansas’s energy provider is offering special tariffs to crypto miners, in order to lower costs as the industry faces additional challenges.
Entergy, a Fortune 500 firm that distributes electric power to customers throughout the American South, has offered a bulk price for mining operations. This is in a state with some of the lowest energy cost in the U.S.
An energy charge, which was first suggested earlier this year, ranges from $0.75 up to just over a penny per kilowatt hour, according to a spokesperson for company. told Arkansas Business.
This is well below the state’s average Arkansas commercial customers pay $0.10 per kilowatt hour, which is well below the national average $0.13.
However, each client’s bill could vary depending on additional charges, such as demand charges, as well as any extra costs the provider needs to cover, like energy efficiency.
Entergy, which is the state’s largest power company, will evaluate whether customers qualify for the special tariff based on their power usage and whether they are directly involved in crypto mining.
To secure the rate, recipients must deposit a 3-month amount. Additional backing may be provided by a letter of credit or a surety bond.
Decrypt Entergy has been contacted for additional comment.
Conditions for crypto miners can be difficult
Arkansas has some of the lowest electricity costs in the United States and has attracted many major mining operations due to its low land prices.
Local business Cryptic Farms has opened four Bitcoin hubs in the past year across the state, while companies GMI Computing, United BitEngine, and Juice Tech have all flocked to the northeastern city of Newport.
The Arkansas boom occurs at a tough time for crypto miners. A perfect storm of low Bitcoin prices combined with high energy costs places strain on many businesses.
Last month, Bitcoin miner Bitdeer The $4 billion deal was delayed to go public The sector is experiencing a cooling investor appetite.
Some companies include Compute North They were unable to weather the crypto winter and declared bankrupt.