The bill was announced on April 1, and already received strong support from key industry players. It also includes provisions to block foreign adversaries from accessing the incentives. This move comes amid a broader shift in Bitcoin mining toward cleaner energy, with recent reports showing a sharp decline in coal usage and increased adoption of renewables. Additionally, Bitcoin mining firm GoMining launched a $100 million institutional mining fund, thanks to the growing institutional interest in crypto assets.
Ted Cruz Introduces Bill to Turn Flared Gas into Bitcoin
Texas Senator Ted Cruz introduced a new bill that is aimed at encouraging crypto miners to use flared gas as an energy source. The legislation is titled the Facilitate Lower Atmospheric Released Emissions (FLARE) Act, and was announced on April 1. It seeks to amend the US Internal Revenue Code to provide incentives for companies to capture gas that will otherwise be wasted through flaring or venting, and instead use it for productive purposes like powering digital asset mining operations. If enacted, the proposed incentives will apply to properties beginning operations in 2026.
Ted Cruz announcement
Flared gas is natural gas that is burned off at oil and gas production sites because it can't be captured or transported economically. Instead of being used, it’s released and burned in large flames, mostly as a waste byproduct. This process is done to relieve pressure or dispose of excess gas, but it also contributes to carbon emissions and energy waste. Ted Cruz’s bill is trying to turn that wasted gas into useful energy for Bitcoin mining instead of letting it pollute the air.
The FLARE Act already received backing from a number of well known industry players, including the mining advocacy group Digital Power Network and Bitcoin miner MARA Holdings. Supporters argue the bill will not only reduce harmful emissions but also unlock underutilized energy resources that will help establish Texas as a leader in the crypto mining sector.
The bill also includes a provision that will prohibit companies that are owned by foreign adversaries like China, Iran, North Korea, and Russia from accessing the same incentives. This move aligns with broader US efforts to limit foreign influence in critical infrastructure sectors.
Senator Cruz served in the US Senate since 2013 and is a well known advocate for crypto innovation. He also previously introduced legislation to block the Federal Reserve from issuing a central bank digital currency (CBDC). Additionally, his personal financial disclosures revealed that he holds up to $100,000 in Bitcoin.
It is still uncertain just how much legislative momentum the FLARE Act will gain due to the still ongoing debates in Congress over digital asset regulation, stablecoin frameworks, and broader crypto market structure bills. Lawmakers are also considering proposals to prevent the issuance of a US CBDC and to remove regulatory hurdles for crypto investments in retirement plans. For now, Cruz’s latest bill adds to the growing list of crypto-related legislation under discussion in Washington.
Bitcoin Mining Coal Dependence Drops
Cruz’s bill is coming at the perfect time. A new report by the MiCA Crypto Alliance, in collaboration with risk data platform Nodiens, revealed a big decline in the use of hydrocarbon fuels, particularly coal, in Bitcoin mining over the past 13 years.
According to the study, coal's share in Bitcoin mining's energy mix dropped from 63% in 2011 to just 20% in 2024. At the same time, renewable energy usage in Bitcoin mining has grown steadily, increasing at an average annual rate of 5.8%. This data shows that there is a very clear trend of the Bitcoin mining industry shifting towards cleaner, more sustainable energy sources.
(Source: MiCA Crypto Allliance)
The study also compared this decline in coal use in Bitcoin mining with global coal consumption trends. While Bitcoin mining’s reliance on coal energy has been decreasing by an average of 8% per year, global coal consumption continued to climb. The International Energy Agency (IEA) reported that worldwide coal usage reached a record high of 8.8 billion tons in 2024, and demand is expected to stay elevated through 2027 due to increased consumption in emerging economies like India, Indonesia, and Vietnam.
(Source: International Energy Agency (IEA))
Looking ahead, the report mentioned five possible scenarios for Bitcoin’s environmental impact based on projected Bitcoin prices. These scenarios range from a low case of $10,000 per Bitcoin to an ultra-bullish outlook of $1 million per Bitcoin by 2030. In a medium-price scenario of $250,000 per Bitcoin, the study estimates that renewable energy could account for between 59.3% and 74.3% of the total energy used in Bitcoin mining, excluding nuclear energy.
The report also predicts that Bitcoin mining’s energy consumption will likely peak around 2030. This projection aligns with earlier research from NYDIG that suggested that even in a high-price scenario, Bitcoin’s electricity use will peak at approximately 11 times its 2020 level, which is about 0.4% of global primary energy consumption and 2% of global electricity generation. The overall findings point to an ongoing and accelerating trend toward decarbonization in the Bitcoin mining industry.
GoMining Unveils Institutional Bitcoin Mining Fund
Crypto mining companies are not only looking after the environment, but they are also catering to investors. GoMining, a platform that specializes in Bitcoin mining through data centers, recently announced the launch of a $100 million Bitcoin mining fund targeted at institutional investors.
The fund is named Alpha Blocks Fund, and will be custodied by Bitgo. It also promises annual distributions derived from Bitcoin mining yield. Its strategy centers on reinvesting Bitcoin rewards to grow the fund’s hashrate and enhance mining efficiency, offering investors direct exposure to mined Bitcoin rather than passive equity investments.
The launch of the fund happened amid growing interest from companies and institutions in Bitcoin, driven by a broader resurgence of the cryptocurrency market. Several companies, like Japan’s Metaplanet and Semler Scientific, have added Bitcoin to their balance sheets. This strategy paid off as it resulted in large increases in their stock valuations.
GoMining’s Alpha Blocks Fund aims to provide institutional-grade exposure to Bitcoin mining while still complying with regulatory standards. It operates with 7.3 Exahash of active hash power and charges a flat annual management fee of 2%, with no performance fees.
In addition to the institutional fund, GoMining continues to offer products tailored to retail users who may not have the resources to set up large-scale mining operations. In 2024, the company introduced a gamified Bitcoin mining experience through non-fungible tokens (NFTs), which helped make mining more accessible to individual users.
Institutional interest in cryptocurrencies has been on the rise since the launch of the first cryptocurrency exchange-traded funds (ETFs) in the United States in 2024. Increased regulatory clarity from Europe’s Markets in Crypto-Assets (MiCA) framework and growing enthusiasm for digital assets in the US are also contributing to this trend. A recent report by Coinbase in March of 2025 indicated that 83% of institutional investors are planning to allocate funds to crypto assets.
