Minnesota combines two of the most important factors for Bitcoin mining: brutally cold winters and reasonable electricity rates. With Xcel Energy residential rates around $0.13–0.15/kWh and a climate that delivers 7–8 months of genuine heating season, Minnesota is one of the best states in the US for the dual-purpose mining strategy. When it’s -25°F outside in January and your Antminer is heating your workshop while stacking sats, the economics make perfect sense. Add in Minnesota’s strong tech workforce and maker culture, and you’ve got fertile ground for the pleb mining movement.
D-Central Technologies ships to Minnesota and all US states. Just across the border from our Canadian headquarters, Minnesota miners benefit from proximity to our operations and the same Mining Hacker philosophy that drives everything we do. We stock the full range of Bitaxe, ASICs, Space Heaters, and accessories.
Minnesota Electricity Rates for Bitcoin Mining
Xcel Energy is the dominant utility in the Minneapolis-St. Paul metro area and much of Minnesota. Other providers include Minnesota Power (northern MN), Otter Tail Power, and numerous rural cooperatives.
Current Residential Rates (2026)
- Xcel Energy: ~$0.13–0.15/kWh (pending final approval of 2025–2026 rate case, with proposed 9.6% increase for 2025 and 3.6% for 2026)
- Minnesota Power (northern MN): ~$0.11–0.13/kWh — potentially cheaper in the Iron Range and Duluth area
- Rural cooperatives: Varies, typically $0.10–0.14/kWh
- National comparison: Minnesota rates are approximately 15–25% below the US national average of ~$0.18/kWh
Time-of-Use Options
Xcel Energy offers optional time-of-use (TOU) rate plans that could benefit miners willing to shift operations to off-peak hours. Off-peak rates (typically overnight) can be significantly cheaper than standard rates, making scheduled mining an attractive optimization strategy.
Monthly Mining Cost Estimates at Minnesota Rates
- Antminer S21 (3,500W): ~$98–114 USD/month
- Antminer S19 (3,250W): ~$91–106 USD/month
- Bitaxe (15W): ~$1.40–1.65 USD/month
- Bitcoin Space Heater S9 Edition (1,300W): ~$37–42 USD/month
These rates put Minnesota in the favorable middle ground — affordable enough for year-round ASIC operation with efficient hardware, and excellent when combined with heating-season value.
Climate: Minnesota Nice for Miners
Minnesota’s climate is legendary for its severity — and that’s exactly what makes it outstanding for Bitcoin mining.
Temperature Profile
- Winter (December–February): Average -10°C to -18°C (14°F to 0°F). International Falls regularly hits -30°C (-22°F) or below. Even the Twin Cities average -12°C (10°F) in January.
- Spring (March–May): Slow thaw from -4°C to 15°C (25°F to 59°F). Snow lingers into April in much of the state.
- Summer (June–August): Warm 22°C to 30°C (72°F to 86°F) with moderate humidity. Short but real summer heat.
- Fall (September–November): Quick cooling from 16°C to -6°C (61°F to 21°F). First frost as early as September in northern areas.
Minnesota delivers 7–8 months of heating season in the Twin Cities area and 8–9 months in northern Minnesota. This is among the longest heating seasons of any populated area in the Lower 48. Bitcoin Space Heaters are practically purpose-built for Minnesota homes.
Extreme Cold Considerations
While cold is generally an asset for mining, Minnesota’s extremes require planning. When intake air drops below -10°C (14°F), ASIC miners can experience issues from thermal shock or condensation when air warms rapidly inside the miner. Best practice: use a mixing chamber or adjustable intake that tempers outdoor air before it reaches your miners. Never pull -30°C air directly through an ASIC.
Regulations and Legal Status in Minnesota
Minnesota takes a neutral regulatory stance on cryptocurrency mining — neither explicitly promoting nor restricting it.
Key Regulatory Points
- No mining bans or restrictions: Minnesota has no legislation specifically targeting cryptocurrency mining. Home miners operate under standard residential service.
- Xcel Energy rate cases: The Minnesota Public Utilities Commission (PUC) regulates rates. Xcel’s current rate case (proposed increases for 2025–2026) is under PUC review with a decision expected in summer 2026.
- State income tax: Minnesota has a progressive income tax ranging from 5.35% to 9.85% — among the higher state rates. Mining income is subject to these rates.
- Sales tax: Minnesota charges 6.875% state sales tax (plus local taxes up to ~8.875% total). Mining equipment purchases are subject to sales tax.
- Noise ordinances: Minneapolis, St. Paul, and suburban cities have noise regulations. ASICs need proper sound management. D-Central Space Heaters offer a quiet indoor alternative.
- Electrical code: Minnesota follows the National Electrical Code with state amendments. Permits and licensed electricians required for all 240V installations.
Best Mining Hardware for Minnesota
Minnesota’s excellent cold climate and reasonable rates support a wide range of mining strategies:
- Bitaxe (all variants): At $1.40–1.65/month, run a Bitaxe year-round. Zero-maintenance solo mining that supports decentralization. Every Minnesota Bitcoiner should have one.
- Bitcoin Space Heaters: THE optimal hardware for Minnesota. With 7–8 months of heating season, a Space Heater replaces your electric heater and earns Bitcoin. In northern Minnesota with 8–9 months of heating, the economics are even stronger.
- Antminer S21: Profitable year-round at Minnesota rates. During winter, the heat is a bonus. Consider Xcel’s TOU rates for further optimization — mine hard during off-peak overnight hours.
- Antminer S19 series: Viable during heating season, marginal in summer depending on rates and Bitcoin price. Good value as a heating-season-focused miner.
- NerdQAxe / NerdAxe: Perfect for the strong Minnesota maker/DIY community. Open-source, hackable, and useful for solo mining education.
Full hardware selection at the D-Central Shop.
Getting Started Mining in Minnesota
- Identify your utility: Determine your provider (Xcel, Minnesota Power, co-op) and exact rate. Explore TOU plans if available.
- Calculate heating costs: Minnesota heating bills are substantial. Determine your monthly electric heating spend from October through April — this is the budget you can redirect to mining.
- Start with a Bitaxe: Order from D-Central. Learn mining fundamentals at minimal cost.
- Deploy Space Heaters before winter: Order Bitcoin Space Heaters before October to maximize your first full heating season of mining.
- Electrical infrastructure: Hire a licensed Minnesota electrician for 240V circuits. Ensure your panel can handle mining load plus normal household use.
- Plan for extreme cold: If your miners pull outdoor air, install air mixing or temperature moderation for intakes. Don’t feed -30°F air directly into your ASICs.
- Order from D-Central: Fast shipping from Canada to Minnesota. Full range of hardware, accessories, and ASIC repair support.
Full walkthrough at Getting Started with Bitcoin Mining.
Frequently Asked Questions
Is Bitcoin mining legal in Minnesota?
Yes. Bitcoin mining is fully legal in Minnesota. There are no state laws targeting or restricting cryptocurrency mining at any scale. Home miners use standard residential electricity service.
How much does it cost to mine Bitcoin in Minnesota?
At Xcel Energy rates of ~$0.13–0.15/kWh, an Antminer S21 costs approximately $98–114 USD/month. A Bitaxe costs $1.40–1.65/month. During the 7–8 month heating season, ASIC electricity costs are offset by heating value. Northern Minnesota residents on Minnesota Power may enjoy even lower rates.
Is Bitcoin mining profitable in Minnesota in 2026?
Yes, especially given Minnesota’s exceptional climate advantage. Latest-generation ASICs are profitable year-round at MN rates, and the 7–8 month heating season makes Space Heater mining effectively free. Northern Minnesota with cheaper power and longer winters is even more attractive.
Can I mine Bitcoin in my apartment in Minnesota?
A Bitaxe works in any apartment — silent, low-power, plugs into a standard outlet. A Bitcoin Space Heater replaces your electric heater during Minnesota’s long winters. Full ASICs are too loud for apartment living. Check your lease for power consumption restrictions.
Can I use Xcel Energy’s time-of-use rates for mining?
Yes. Xcel offers optional TOU plans where off-peak electricity (typically overnight) is cheaper than the standard rate. If you can schedule your most intensive mining during off-peak hours, or if you mine 24/7 and the blended rate is favorable, TOU plans can reduce your mining costs. Contact Xcel to compare your current plan with TOU options.