Crypto Mining Stocks Skyrocket as Withdraws Proposed Crypto Tax

Major crypto mining stocks experienced a dramatic surge on Tuesday, led by Riot Platforms with an astonishing 10% rise. Iris Energy, Hive Blockchain, Cleanspark, Hut 8 Mining, and Marathon Digital Holdings were also part of this upward trend, with each climbing 5.5% or more, according to the Forbes.

This sudden rise is likely due to President Joe Biden’s decision to withdraw his proposed 30% tax on electricity used by crypto mining companies. This proposed tax, known as the Digital Assets Mining Energy excise act or the DAME act, was part of Biden’s proposed budget for the 2024 fiscal year.

The DAME act sought to impose a phased tax on companies that used computing resources to mine digital assets, starting at 10% in 2024, rising to 20% in 2025, and reaching 30% in the following years. The primary aim of the act was to ensure crypto miners contribute to the costs incurred by local communities and the environment.

However, this tax proposal faced considerable opposition. Rep. Warren Davidson confirmed that the current debt proposal does not include a digital asset mining energy tax. He views this as a significant victory for the industry.

In conclusion, the decision to withdraw the proposed DAME act seems to have breathed new life into the crypto mining sector. As a result, investors and industry watchers are keeping a keen eye on the market, as this could signal more positive developments for the crypto mining industry.

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