Italy’s agreement with the European Commission may reduce energy costs, but the information released so far does not show whether the measure would make Bitcoin mining profitable in the country.

The deal sets no tariffs or savings yet

As ANSA reported, Italy and the European Union reached an agreement on October 16, 2026, to develop provisions included in the Energy Bills Decree, or Decree-Law 21/2022. The measure is intended to “mitigating the impact of energy costs” and “preserving a level playing field within the internal market and minimizing distortions.” Because the framework dates to 2022, the agreement sets out how an existing decree will be developed rather than introducing a new energy measure.

The agreement does not yet specify tariffs, eligibility requirements or the amount of potential savings. It also contains no announced provisions directly targeting Bitcoin miners.

Italy’s wholesale electricity prices

Day-ahead figures released by EuroEnergy on October 17, 2026, put Italy’s electricity price at €232.41 per megawatt-hour (MWh), a 4% decrease from October 16. France price was €139.30/MWh, while Greece’s was €174.60/MWh.

Italy’s day-ahead prices ranged from €180.99 to €287.50/MWh. The 30-day moving average was €211.57/MWh, compared with an average of €112.12/MWh in October 2025. The average is now close to double its level of a year earlier, a gap that illustrates the cost pressure the decree is meant to ease.

Calculations by EUEnergy put the average electricity price across six Italian zones at approximately €210/MWh between September 10 and October 9. That figure excludes electricity distribution fees, taxes and margins charged by power suppliers. These are wholesale prices rather than the contracted rates paid by individual mining companies.

Mining break-even costs remain lower

In its September 2026 review, Luxor reported that hashprice stood at $39.92 per petahash per second per day at the end of the month. Hashprice measures how much miners earn from a given amount of computing power.

The report placed Bitcoin network difficulty at 132.76 trillion at the end of September. The seven-day average hashrate reached 975 exahashes per second (EH/s), and hashrate approached 999 EH/s on October 8.

Those figures leave limited room for miners using expensive electricity. Luxor calculated break-even power costs of $137/MWh for machines below 14 joules per terahash (J/TH), and $99/MWh for machines rated between 14 and 19 J/TH. A lower joules-per-terahash rating indicates greater energy efficiency, which is why the more efficient machines can remain viable at higher power prices before mining revenue stops covering costs. By comparison, industrial mining companies pay an average of about $48/MWh for electricity.

Italy’s market average of €232.41/MWh was approximately $261.53/MWh using the European Central Bank’s exchange rate on October 16. That is substantially higher than both of Luxor’s break-even thresholds.

The gap is also evident in EUEnergy’s assessment. Its report, published on October 10, placed Italy’s 30-day average electricity price at €210/MWh, or about $235.33/MWh using the ECB exchange rate for October 9. Using a mining machine with an energy efficiency rating of 13.5 J/TH, EUEnergy estimated that the electricity cost of mining one Bitcoin would average €143,800, or $161,142.

Luxor reported Bitcoin’s price at $83,687 on September 30. Although the calculations use different dates, the estimated electricity expense is nearly twice that Bitcoin price, before accounting for other operating costs. The comparison illustrates the challenge facing miners that rely on Italy’s wholesale electricity market.

ALPS uses locally generated power

ALPS, an Italian mining company founded in Trento in 2018, offers one example of a different operating model. Between 2019 and 2022, the company established more than 20 micro-hydropower mining sites across northern Italy. By placing mining equipment alongside existing power plants, ALPS was able to use locally generated electricity rather than relying entirely on wholesale-market purchases. Its projects describe this approach.

The strategy later became part of the company’s international expansion. ALPS reported receiving €40 million in funding in 2023, €105 million in 2024 and a further €60 million in 2025.

The company has also expanded beyond Bitcoin mining. On October 15, it hired Brian Turnbow to develop artificial-intelligence and high-performance-computing facilities next to its mining installations, according to its announcement. The stated aim is to create infrastructure that can support multiple types of computing activity. The co-location follows the same principle as the mining sites: computing capacity placed next to the source of power.

ALPS has not disclosed enough information to determine whether its Italian mining facilities are profitable at current electricity prices. Its model nevertheless highlights the difference between securing low-cost power directly and waiting for broad government relief.

Implications for mining competition

CoinShares found that listed miners’ cash production cost averaged $75,500 per Bitcoin in the second quarter of 2026, compared with a Bitcoin price of $58,400 on June 30. That spread put the sector’s average cash cost above Bitcoin’s market price at quarter-end. Core Scientific paid $41.9 million to cancel hardware, while Keel exited the mining sector.

A Cambridge report found that electricity represents more than 80% of miners’ cash expenses. An April 2026 study documented changes in the geographic distribution of mining, while Cryptopolitan reported on Tether’s power dispute in Uruguay.

Italy’s agreement could alter the economics of mining only if it produces substantial, clearly defined savings and brings electricity costs closer to competitive levels. Until those terms are published, the deal alone does little to change the profitability calculations for miners operating in Italy.