As the Biden administration proposes a significant tax increase on electricity used by cryptocurrency mining operations, companies are exploring the Middle East for their next growth phase, influenced by both policy changes in the United States and global shifts in the sector.

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• The Biden team wants to charge more for the electricity that digital money makers use, so these companies are thinking about moving to the Middle East, where it’s cheaper and has lots of power.
• Big projects in the Middle East, like Oman’s huge digital money farm and a cool new way to mine Bitcoin without it getting too hot, are making more miners want to move there.
• Some smart people are worried that new rules in the U.S. could make it hard for digital money makers, but others still think the U.S. is a good place for making digital money.

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Middle East Emerges as a New Frontier for Crypto Miners Amid U.S. Regulatory Hurdles

The Biden government wants to add a 30% cost to the power that companies use to create digital money, making them worried about spending too much money in the United States. Right now, the United States is a big player in the Bitcoin world, but that might change if it becomes too expensive to operate there.

Lorna Blount tells us that the Middle East is looking really good to these companies because they don’t ask for as much money in taxes, they have lots of power available, and they’re not as strict about the environment. Oman is already putting a lot of money into this, and the UAE is doing a lot of Bitcoin mining too.

Olivier Ohnheiser, who runs a company called Green Data City in Oman, said that the area is great for business because it’s peaceful, power is cheap, and the weather is good for keeping computers cool. They’re planning to build a big farm for mining digital money in Oman with a company called Phoenix Group, and they’re spending $300 million on it. There’s also another big project about to start, which will use cool technology to keep the mining machines from getting too hot, even in the desert.

Some experts in the United States, like Kyle Shneps from Foundry and Darin Feinstein from Core Scientific, are worried that this new tax could really hurt the mining business in the United States and might make companies want to move to places like the Middle East instead.

But Anthony Scaramucci, who knows a lot about digital money, thinks the United States is still a great place for this kind of business because it’s a good place for new ideas and growth.

With all this talk about new taxes, companies that make digital money in the United States have to decide if they want to stay and figure it out or move to a place with better conditions.

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