New Brunswick proposal would keep power from new crypto miners 

Passing the proposal in New Brunswick would be “a curious step,” Texas Blockchain Council founder says

article-image

Ramon Cliff/Shutterstock modified by Blockworks

share

Canadian province New Brunswick doesn’t want power going to new crypto mining operations.

Critics argue that policymakers are overlooking a chance to collaborate with mining companies to increase the stability of their electric grid.

An amendment to New Brunswick’s Electricity Act states: “A distribution electric utility shall not extend its supply of electricity to a cryptocurrency mining business.”

The proposal — made by Mike Holland, minister of natural resources and energy development — would not apply to operations that entered into a contract before potential passage of the legislation.

It comes after New Brunswick Premier Blaine Higgs in March 2022 signed a cabinet order supporting a freeze of service to new crypto miners, CBC previously reported.

“The cryptocurrency sector is an area that has a significant…draw or demand as it relates to electricity,” Holland told CBC. “We can’t compromise the existing rate base so we need to make sure that we have capacity.” 

Holland, and the New Brunswick Power Corporation, did not immediately return requests for comment. 

“Some jurisdictions that do not understand how bitcoin mining can be used as a tool and resource for their grid operator may seek to ban bitcoin mining in that locality,” Lee Bratcher, founder of the Texas Blockchain Council, told Blockworks.

Miners in Texas have the option to sell their grid-balancing rights to the Electric Reliability Council of Texas (ERCOT) by reducing their energy consumption.

Read more: Not all about bitcoin production: Miners benefit by curtailing operations

Riot Platforms in August received $31.7 million in credits from ERCOT for curtailing power usage during peak energy demand times. This helps the energy provider continue offering power to consumers without interruptions, the company has said.  

“Were they to pass this bill, the government in New Brunswick would be taking a curious step to ban the end use of electricity by simultaneously preventing a grid resource like bitcoin mining from serving as a flexible, demand response capable load,” Bratcher said.

Hive Digital Technologies operates a 70 megawatt data center in New Brunswick, according to its website. 

Gabriel Ibghy, general counsel for HIVE Digital Technologies, said he expects the bill to have no impact on Hive’s operations in the region. He noted that the proposal excludes existing crypto mining operations.

“Hopefully local legislators will see that there is more to gain through partnering with datacenter operators, like Hive, in order to stabilize their grid and offtake surplus renewable power from new and green generation projects,” Ibghy added.

The proposal counters miner-friendly legislation in certain US states. Montana, for example, passed a bill in May allowing miners to conduct their business free from government interference — noting they offer “positive economic value” for US individuals and companies. 

Brett Quick, head of government affairs at Crypto Council for Innovation, argued at the time that crypto data centers have “a unique mix of flexibility, consistency and transparency” that can help energy stability, transfer and storage.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

The convergence of DePIN and energy generation aims to address modern grid challenges by incentivizing distributed generation.

article-image

The deal is made up of $700 million in cash and 11 million shares of Coinbase’s Class A common stock

article-image

Blockworks Research uses numbers to help crypto advance to a higher stage of storytelling

article-image

While Arizona’s governor could veto another crypto reserve bill, similar North Carolina and Texas laws are approaching the finish line

article-image

However, they noted there’s now an increased risk that unemployment and inflation will rise in the coming months. 

article-image

The network’s most ambitious upgrade since the Merge brings validator streamlining, smart account UX and doubled blobspace to Ethereum