Senator Cruz’s New Bill: Turning Waste Gas into Bitcoin Gold! 💰🔥

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In a rather theatrical display of legislative prowess, United States Senator Ted Cruz has unveiled a bill that promises to sprinkle tax incentives like confetti for cryptocurrency miners who dare to harness the flared natural gas that would otherwise be wasted. Ah, the sweet smell of progress! 🌬️

On the first day of April—how fitting!—Cruz introduced the Facilitating Lower Atmospheric Released Emissions Act, which he boldly claims will transform Texas into the “number one place for Bitcoin mining.” One can only imagine the tumbleweeds of excitement rolling through the Lone Star State. 🤠

The FLARE Act, as it is charmingly dubbed, proposes a delightful alteration to the U.S. tax code, allowing companies to permanently deduct the full cost of systems designed to capture and repurpose natural gas that would otherwise be flared or vented. Because who wouldn’t want to turn waste into wealth? 💸

These systems, known as flaring and venting mitigation systems (a mouthful, isn’t it?), would qualify for a generous 100% expensing starting in 2026. Yes, you heard that right—2026! Mark your calendars, folks! 📅

To be eligible, the equipment must perform the miraculous feat of converting natural gas into something useful, like electricity, liquid fuels, or even computational power for digital asset mining. It’s like a magic show, but with more spreadsheets and fewer rabbits. 🎩✨

The bill lists several eligible uses, including compressing or liquefying gas for transport, producing petrochemicals or fertilizer, and powering oilfield equipment or the electrical grid. It’s a veritable buffet of possibilities! 🍽️

In a twist worthy of a soap opera, the bill also blocks foreign entities of concern—those dastardly villains from China, Russia, Iran, or North Korea—from benefiting from these incentives. It’s a patriotic move, designed to keep the tax break exclusive to U.S.-aligned operators and bolster domestic energy independence. Cue the national anthem! 🎶

By transforming stranded gas into usable energy, Cruz and his merry band of supporters argue that the bill would not only cut emissions but also boost energy innovation and grid resilience, especially during those delightful periods of peak demand or extreme weather. Because nothing says “innovation” like a good old-fashioned Texas storm! ⛈️

“This bill takes advantage of Texas’s vast energy potential, reinforces our position as the home of the Bitcoin industry, and is good for the environment. I call upon my colleagues to expeditiously take up and advance this legislation,” Cruz proclaimed, likely while wearing a ten-gallon hat. 🤠

The bill has already garnered support from industry players who see it as a win-win for both energy and innovation. It’s like a match made in heaven—or at least in a Texas oil field. 💑

Bitcoin mining firm MARA Holdings has endorsed the legislation in a post on X, adding that it could reduce emissions and “unlock stranded energy” across Texas and beyond. See below for their enthusiastic endorsement:

The FLARE Act from Sen. @tedcruz allows full expensing for infrastructure that captures and repurposes flared gas into value-added uses—like Bitcoin mining.

MARA supports this legislation. It recognizes Bitcoin mining’s role in reducing emissions and unlocking stranded energy.

— MARA (@MARAHoldings) April 1, 2025

Last year, MARA partnered with NGON to launch a 25-megawatt micro data center operation across wellheads in Texas and North Dakota. The data center will use excess natural gas to generate electricity to power data centers, offering energy producers a high-efficiency solution for methane mitigation. Talk about a win-win! 🎉

Under the legislation, infrastructure like this would qualify as a flaring and venting mitigation system, making it eligible for permanent full expensing. That means MARA and similar operators could deduct the entire cost of installing such systems from their taxable income, starting in 2026. It’s like Christmas in April! 🎄

Long before he introduced the FLARE Act, Cruz floated the idea at the 2021 Texas Blockchain Summit that Bitcoin mining could turn excess energy from oil and gas operations into something useful instead of just burning it off. A novel concept, indeed!

“Use that power to mine Bitcoin. Part of the beauty of that is the instant you’re doing it you’re helping the environment enormously because rather than flaring the natural gas you’re putting it to productive use,” he mused at the time, likely envisioning a future where Bitcoin miners are the new environmental heroes. 🦸‍♂️

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2025-04-02 12:52