Cointime

Download App
iOS & Android

Manitoba Halts New Crypto Mining Projects Due to Expected High Energy Demand

Cointime Official

Authorities in Manitoba are temporarily suspending the connection of new crypto mining facilities to the power grid. The Canadian province, which relies heavily on hydroelectric generation and attracts miners with low electricity rates, fears it may face overwhelming energy demand.

Manitoba Suspends New Crypto Mining Operations Citing Possible Increase in Electricity Usage

The government of Manitoba is halting new connections of crypto mining centers to the province’s hydroelectric grid, the Canadian press reported. Officials explain the move with the potential for increasing energy demand that the region may not be able to meet.

The suspension, imposed for a period of 18 months, will not affect the 37 currently active mining operations, according to an article by the Toronto Star. The measure is aimed at halting a growing number of requests to power new facilities with combined capacity amounting to a sizable portion of the province’s electricity supply.

Providing the reasoning for the decision, Manitoba Minister of Finance Cameron Friesen, the government official responsible for the state-owned company Manitoba Hydro, commented on Monday:

We can’t simply say, ‘Well anyone can take whatever [energy] they want to take and we’ll simply build dams. The last one cost $13 billion if you priced in the [transmission] line.

With the second-lowest electricity rates in Canada, only Quebec offers cheaper power, Manitoba is a magnet for users that need large amounts of electricity such as those involved in the energy-intensive extraction of cryptocurrencies.

Friesen revealed that 17 new operators have filed requests with the authorities in the province for a total of 370 megawatts of electricity. That exceeds half of the power produced by the Keeyask hydroelectric generating station which became operational in 2022.

The region’s finance minister also highlighted the concern of the Progressive Conservative government that blockchain businesses may not create many jobs. “You can be utilizing hundreds of megawatts and have a handful of workers,” he elaborated.

“Manitoba Hydro cannot make discretionary decisions about who to hook up,” Friesen emphasized. A government review is expected to analyze the economic impact of cryptocurrencies and the need for a regulatory framework to approve new large connections to the grid.

BTC
Comments

All Comments

Recommended for you

  • Binance Founder Faces Potential Three-Year Prison Sentence and $50 Million Fine for Money Laundering and Sanctions Violations

    Binance founder Changpeng Zhao has been recommended a three-year prison sentence by federal prosecutors for violating federal money laundering laws and sanctions. The Department of Justice argued that this sentence would hold him accountable for his intentional criminal conduct and send a message to the world. Zhao made a "business decision" to break the law to attract users, build his company, and line his pockets, according to prosecutors. Along with the prison sentence, DOJ lawyers also requested that Zhao pay the $50 million fine he agreed to as part of a plea deal. Zhao, who is a citizen of the UAE and Canada, has been released on a $175 million bond but must remain in the U.S. until his sentencing on April 30.

  • Market News: South Africa authorizes 75 companies as cryptocurrency service providers

    According to Jinshi news, South Africa has authorized 75 companies as cryptocurrency service providers.

  • Indonesian President: $8.6 billion laundered through cryptocurrency in 2021

    According to Golden Finance News, Indonesian President Joko Widodo stated that he has noticed signs of money laundering through cryptocurrency in 2021, amounting to $8.6 billion (IDR 139 trillion). In addition to cryptocurrencies and NFTs, the president emphasized the need to monitor other potential money laundering tools, including virtual assets, market activities, e-currencies, and AI-driven transactions. Mahendra Siregar, Chairman of the Financial Services Authority (OJK) Committee, responded to the President's directive, stating that when cryptocurrency regulation is transferred to the OJK next year, his agency will supervise these issues.

  • BTC breaks through $67,000

    Tthe market shows that BTC has broken through $67,000 and is now trading at $67,025.99, with a daily increase of 1.12%. The market is volatile, please be prepared for risk control.

  • Bitcoin spot ETF had a total net inflow of $31.6354 million yesterday, and the ETF net asset ratio reached 4.27%

    According to SoSoValue data, the total net inflow of Bitcoin spot ETF was $31.6354 million on April 23 (US Eastern Time).Grayscale ETF GBTC had a net outflow of $66.8838 million on April 23, and the historical net outflow of GBTC is $16.833 billion.The Bitcoin spot ETF with the highest net inflow on April 23 was BlackRock ETF IBIT, with a net inflow of $37.9233 million in a single day, and the historical total net inflow of IBIT has reached $15.479 billion.The second highest was the ARKB ETF from Ark Invest and 21Shares, with a net inflow of $33.282 million in a single day, and the historical total net inflow of ARKB has reached $2.267 billion.As of now, the total net asset value of Bitcoin spot ETF is $55.82 billion, and the ETF net asset ratio (the proportion of market value to the total market value of Bitcoin) is 4.27%, with a historical cumulative net inflow of $12.416 billion.

  • CZ announces Giggle Academy logo and design ideas

    CZ has released the Giggle Academy Logo and its design concept. He hopes that the logo can showcase youthfulness, fun, positive energy, and growth while continuing the "Binance tradition":

  • Ethereum liquidity re-staking agreement TVL exceeds US$9.4 billion, of which Renzo TVL increased by 12.34% in 7 days

    DeFiLlama data shows that the TVL of Ethereum's liquidity re-staking protocol has risen to $9.445 billion. The top five protocols ranked by TVL are:

  • MEME sector rose across the board, and BONK rose 81.4% in the past 7 days

    Golden Finance reported that according to data, the current market value of MEME coin is 57.872 billion US dollars, with a 24-hour increase of 2.1%. In addition, in the past 24 hours, the global trading volume of Meme coin has reached 5.6 billion US dollars. Among them:

  • Cointime April 21th News Express

    1.An Ethereum pre-mining address that has been dormant for 8.7 years has been activated, containing 197 ETH 2.Bitcoin block reward halving sparks bullish and skeptical opinion split3.A whale withdrew another 10,119 ETH from Binance4.MtGox claims form updated, may support compensation payment in BTC and BCH5.ZKasino transfers the 10,515 ETH deposited by the user to a multi-signature address and deposits it into Lido 6.Pre-Rune concept NFT Rune Doors is the project party for the deployment of Rune No. 97.More than 11,000 BTC flowed out of Coinbase Pro in the past 7 days8.Solana Ecosystem NFT Social Platform Only1 Completes $1.3 Million Strategic Financing, Led by Newman Group 9.friend.tech: V2 version has completed the audit and will be released on April 2910.Bitwise CEO: Wealth Manager Will Increase Its Bitcoin ETF Holdings

  • Bitcoin halving: Why it’s important for BTC scarcity

    Bitcoin's most important economic mechanism, the halving, could legitimize Bitcoin as a store of value asset for the digital age, seeking more liquid assets than real estate or gold.