Crypto in the North: Should Manitoba Reopen Its Doors to Cryptocurrency Mining?
Written by Jayden Kyryluk, B.A., JD Candidate 2026
On April 15, 2024, the Manitoba government instructed Manitoba Hydro to maintain its moratorium on new or pending cryptocurrency (“crypto”) mining operations, set to expire on April 30, 2026.[1] The pause reflects concerns over the sheer scale of electricity demanded by crypto operations and the strain they place on a public utility not designed for unregulated industrial expansion. First imposed in November 2022, the now two-and-a-half-year pause begs the question: are we missing a major opportunity? Or is the moratorium necessary to provide a steady energy supply and protect the environment?
Cryptocurrencies enter circulation through mining, an energy-intensive process that relies on high-powered computer processors consuming large amounts of electricity.[2] As crypto mining has expanded, so too has global energy usage, prompting environmental concerns that are mirrored by crypto’s economic benefits.
As Manitoba positions itself in the 21st-century global economy, Manitoba Hydro’s pause on crypto mining invites a necessary debate over its benefits and negatives for Manitoba’s economy and long-term future. This blog explores both sides of the issue, arguing that a middle-ground policy, rather than a blanket “yes” or “no,” might be the most responsible path forward.
The Legal and Regulatory Landscape of Crypto Mining in Manitoba
Before diving into the debate, it is important to understand the legal and regulatory context. While neither the federal nor Manitoba governments have legislation specifically targeting crypto mining, operators must still comply with existing frameworks, including tax, securities, and environmental regulations.[3] Mined cryptocurrency, for example, must comply with provincial tax laws and are treated as inventory and valued using cost accounting guidelines.[4]
With the moratorium in place until 2026, the Manitoba government is using this pause to assess the situation and work toward a long-term solution. In the meantime, the case for and against crypto mining deserves careful analysis as Manitobans await a final decision.
The Case for Allowing Cryptocurrency Mining
1. Economic Diversification
Crypto mining represents an opportunity to diversify Manitoba’s economy. Long relying on resource extraction and agriculture, the province may benefit from expanding into the digital economy like other jurisdictions such as Alberta and Texas. When responsibly regulated, Crypto mining operations can attract global investment and build Manitoba’s profile as a technology hub, particularly appealing to areas outside of Winnipeg that are looking for economic revitalization.
In the U.S., for example, bitcoin mining contributes over $4.1 billion to the national economy.[5] In North Dakota alone, it provides $215.4 million to the state economy.[6] Manitoba, in need of diversification, could leverage this opportunity to position itself as a tech-forward province. It need only look southward to see the possibilities.
2. Jobs and Community Benefits
While the job creation potential of crypto mining is often overstated as operations tend to be highly automated, there are still tangible employment benefits. Building and maintaining facilities requires contractors, electricians, IT specialists, and site managers. In smaller communities, even a handful of full-time jobs and investment in local infrastructure like broadband can be significant.
In Texas, for instance, large-scale mining facilities have rejuvenated declining post-industrial towns, creating thousands of jobs in sectors such as electrical engineering, programming, security, and construction.[7] Similarly, some Manitoban towns could position themselves as digital centres and leverage this emerging digital frontier to stimulate their local economies. There’s also potential for community partnerships, especially with rural municipalities or First Nations seeking to leverage land and power agreements in ways that generate local revenue.
3. Utilising Manitoba’s Renewable Energy and Weather
Manitoba’s geography and energy profile make it uniquely well-suited for cryptocurrency mining. The province generates nearly 96% of its electricity from renewable hydroelectric sources, leading to the lowest energy rates in Canada.[8] This positions Manitoba as one of the few jurisdictions globally where crypto mining can occur without relying on fossil fuels, making it a compelling option for firms who would like to pursue a greener alternative than in jurisdictions who use fossil fuels heavily.
In addition, Manitoba’s cold climate offers a natural advantage. Cooling is one of the largest ongoing costs for crypto mining operations, which generate enormous heat. In warmer climates, maintaining safe temperatures for hardware requires massive air conditioning systems and water usage. In Manitoba, ambient cold can naturally offset those cooling needs, improving energy efficiency and lowering operational costs.[9] The province’s green energy, low rates, and cold weather make the province a highly attractive jurisdiction for crypto mining.
The Case Against Cryptocurrency Mining
1. Energy Demands and Grid Strain
The most significant drawback of crypto mining is its staggering electricity consumption. Bitcoin alone has been compared to the power usage of some countries. For example, it is estimated that the global electrical consumption of bitcoin mining is between 155 TWh to 172 per year, comparable to the energy usage of Poland, a country of 36 million people.[10]
While Manitoba’s hydroelectric power is clean, it’s also finite. Manitoba Hydro has warned that the province’s electricity capacity may not be able to meet future demand, especially with population growth and the electrification of transport on the horizon. In 2022, then-CEO of Manitoba Hydro Jay Grewal stated, “If we connected every cryptocurrency operator who’s shown interest in the last 16 months, we’d increase our total electrical load by 4,600 megawatts.”[11] Manitoba’s total capacity at the time was 6,100 megawatts, and as of writing three years later, it remains unchanged.[12] On January 31, 2025, Manitoba Hydro’s system demand peaked at 5,111.5 megawatts due to freezing temperatures.[13] Had crypto facilities been online, Manitoba Hydro might have failed to meet that demand.
As a result, it can be argued that the pause reflects a need to prioritise long-term energy planning over short-term profit and is indicative of Manitoba’s declining energy capacity rather than opposition to economic growth.
2. Questionable Long-Term Value
Cryptocurrency is a volatile and speculative sector. While blockchain technology may have long-term value, the economic case for large-scale mining of a volatile resource is less certain. Boom-and-bust cycles are common, and mining operations may pack up and leave if the incentive to mine crypto falls. Manitoba could be left with abandoned facilities, degraded infrastructure, or unmet promises.
The same power could instead support industries with greater long-term value, such as green manufacturing, battery production, or innovation in agriculture. These industries have stronger ties to local Manitoban labour markets and may generate more stable, diversified economic activity. In other words, just because Manitoba can power crypto does not mean it should, especially when the alternatives may deliver better social returns in relation to the energy they use.
3. The Public Interest
At the heart of the question is this: what is the public interest? Is it maximizing economic gain for Manitobans, or conserving power for residents and not mining operations?
While the answer may lie with one’s political orientation, the reality is that Manitoba Hydro is a publicly owned utility. The government has a duty to ensure that public resources, especially clean power, are used in ways that align with public interest. Some may argue that mining crypto for private gain may not meet this threshold.
Policy Options: A Middle Ground?
The debate doesn’t have to end in a binary decision. Manitoba could implement a range of policies that represent a middle-ground approach:
- Strict Regulation: Allow mining operations only through strict permit systems with defined caps and oversight.
- Interruptible Load Agreements: Require all mining firms to agree to energy curtailment during periods of high demand or low water levels (e.g., the $157 million loss across the Lake Winnipeg Basin in 2024).[14]
- Tiered Electricity Pricing: The more electricity used, the more crypto mining companies will be charged. Under a tiered pricing system, companies can use a set amount of electricity each month at a base rate.[15] Once that threshold is exceeded, higher rates apply through additional tiers, thereby disincentivizing excessive electricity usage. These thresholds could also vary seasonally to reflect changing demand patterns.
- Time-of-Use (TOU) Pricing: Another option Manitoba Hydro could offer is time-of-use pricing, where electricity rates fluctuate based on the time of day. During peak hours, rates would increase; during off-peak periods, they would decrease. This approach would encourage crypto companies to shift their operations to times when electricity demand is lower, helping to balance the grid.[16] Jurisdictions like Ontario and California already offer both tiered and TOU pricing models to consumers.[17]
- Environmental and Economic Contribution Requirements: Project approvals could be made contingent upon demonstrable contributions to local communities or environmental protection goals. This could follow models used in pipeline regulations, which often require companies to hire local workers and invest in environmental improvements.[18]
These policy tools could allow the Manitoba government to foster innovation while still protecting the grid, the environment, and the public interest.
Conclusion
Cryptocurrency mining presents both opportunities and risks for Manitoba. On one hand, it offers economic opportunity, investment, and a use for Manitoba’s renewable energy and weather. On the other, it risks draining limited power resources, contributing little to long-term development, and undermining the public interest.
Canada is already the fourth-largest Bitcoin mining hub in the world.[19] Rather than taking a permanent stance for or against crypto mining, the Manitoba government should develop a clear, accountable policy framework that maximizes benefits and mitigates harm. With economic uncertainty on the horizon, flexibility paired with foresight may be the most powerful currency of all.
As Manitobans await the expiry of the cryptocurrency mining moratorium on April 30, 2026, one thing is certain: if the province is to embrace crypto mining in any form, it must first invest in expanding energy capacity. Manitoba’s digital future begins there.
[1] Manitoba Hydro, News Release, “Province directs Manitoba Hydro to continue pause on new cryptocurrency connections”(18 April 2024), online: <https://www.hydro.mb.ca/articles/2024/04/province_directs_manitoba_hydro_to_continue_pause_on_new_cryptocurrency_connections/>.
[2] Brady Chapman and Ken Tennenhouse, “Cryptocurrency Mining Opportunities for Western Canada’s Energy Industry”(8 April 2022), online: <https://www.mltaikins.com/insights/cryptocurrency-mining-opportunities-for-western-canadas-energy-industry/>.
[3] Ibid.
[4] Government of Canada, News Release, “Reporting your crypto-asset income as an individual carrying on a business” (22 October 2024), online: <https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/reporting-your-crypto-asset-income-individual-carrying-business.html>.
[5] “The Economic Impact of Bitcoin Mining: Jobs, Investment, & Energy Stability” (20 February 2025), online: <https://www.mara.com/posts/the-economic-impact-of-bitcoin-mining-jobs-investment-energy-stability>.
[6] Ibid.
[7] Koleya Karringten, “Three Reasons Why Bitcoin Mining is Good for Canada” (15 March 2023), online: <https://www.canadablockchain.ca/three-reasons-why-bitcoin-mining-is-good-for-canada/>.
[8] Canada Energy Regulator, “Provincial and Territorial Energy Profiles – Manitoba”, online: <https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/provincial-territorial-energy-profiles/provincial-territorial-energy-profiles-manitoba.html#s1>.
[9] Ari Kimelman, “Bitcoin Mining in Manitoba: Opportunities, Challenges, and Regulatory Responses” (3 November 2024), online: <https://www.manitobablockchainassociation.com/post/bitcoin-mining-in-manitoba>.
[10] Jean-Paul Delahaye, “Bitcoin: electricity consumption comparable to that of Poland” (30 October 2024), online: <https://www.polytechnique-insights.com/en/columns/energy/bitcoin-electricity-consumption-comparable-to-that-of-poland/>.
[11] Derek Andersen, “Crypto miners face energy refusal, restriction in Canadian provinces” (22 April 2025), online: <https://cointelegraph.com/news/crypto-miners-face-energy-refusal-restriction-canadian-provinces>.
[12] Manitoba Hydro, “Generation”, online: <https://www.hydro.mb.ca/corporate/operations/generation/>.
[13] “Manitoba Hydro sets new daily record for electricity demand”, CBC News (31 January 2025), online: <https://www.cbc.ca/news/canada/manitoba/manitoba-hydro-peak-usage-1.7446495>.
[14] Bartley Kives, “Manitoba Hydro blames $157M loss on drought across Lake Winnipeg basin”CBC News (2 October 2024), online: <https://www.cbc.ca/news/canada/manitoba/manitoba-hydro-drought-1.7339784>.
[15] Ontario Energy Board, “Electricity Rates”, online: <www.oeb.ca/consumer-information-and-protection/electricity-rates>.
[16] Ontario Energy Board, “Choosing your electricity price plan”, online: < https://www.oeb.ca/consumer-information-and-protection/electricity-rates/choosing-your-electricity-price-plan>.
[17] Southern California Edison, “Tiered Rate Plans”, online: <https://www.sce.com/residential/rates/Standard-Residential-Rate-Plan>.
[18] Government of Canada, “Frequently Asked Questions (FAQs) Concerning Federally-Regulated Petroleum Pipelines in Canada”, online: <https://natural-resources.canada.ca/energy-sources/fossil-fuels/faqs-federally-regulated-petroleum-pipelines-canada>.
[19] Denise Paglinawan, “Amount of energy needed for Bitcoin mining has doubled in Canada this year, study finds”, Financial Post (6 July 2024), online: <https://financialpost.com/fp-finance/cryptocurrency/energy-bitcoin-mining-doubled-canada-study>.
The views and opinions expressed in the blogs and case reporter are the views of their authors, and do not represent the views of the Desautels Centre for Private Enterprise and the Law, the Faculty of Law, or the University of Manitoba. Academic Members of the University of Manitoba are entitled to academic freedom in the context of a respectful working and learning environment.