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Texas Power Prices Surge 6,000%: What it Means for Bitcoin Miners

2 mins
Updated by Geraint Price
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In Brief

  • Texas' power price surge could severely impact Bitcoin (BTC) miners as the state is a major hub for the industry.
  • The Electric Reliability Council of Texas (ERCOT) is asking businesses and households to limit electricity usage.
  • A previous shutdown by Bitcoin miners due to a winter storm led to a significant decrease in Bitcoin hashrate.
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The Electric Reliability Council of Texas (ERCOT) has asked households and businesses to voluntarily cut down their electricity consumption as the prices in Texas have crossed over the $5,000 mark. But the question is how will this impact Bitcoin (BTC) miners?

Texas is one of the largest Bitcoin mining hubs. However, the power price trouble could severely impact the hashrate of Bitcoin.

Hashrate is the measurement of the computation power in a proof-of-work network. It also helps determine the security and mining difficulty of a blockchain.

Texas Urges Businesses to Cut Consumption

According to Bloomberg, Texas spot electricity prices have surged due to the impact of summer heat. The screenshot below shows that the prices have approached the $5,000 mark, hitting the ERCOT price cap, surging more than 60x.

Click here to learn how to get started with cloud mining.

Despite the price surge, the excess supply of electricity has been decreasing. Hence, ERCOT’s request to limit electricity usage.

Electricity prices in Texas. Source: Bloomberg
Electricity prices in Texas. Source: Bloomberg

Impact on Bitcoin Hash Rate

Texas is one of the largest centers for Bitcoin mining. The screenshot below shows that a huge chunk of the total hashrate of some of the largest mining firms comes from Texas. Plus, mining firm Riot’s 100% operation is in Texas.

Bitcoin miners hashrate in Texas. Source: Forbes
Bitcoin miners hashrate in Texas. Source: Forbes

Bitcoin miners have a history of voluntarily shutting down their operations and cooperating with ERCOT to conserve energy. It would definitely impact the Bitcoin hash rate if they willingly turned off their rigs during the current crisis.

In December 2022, when a winter storm hit Texas, the Bitcoin hash rate sharply plummeted by 35% as the miners shut down rigs. However, on the next day, it recovered to its previous levels.

Amid the current developments, the Bitcoin hashrate has decreased since the start of the week. The screenshot below shows that the hashrate has decreased from 445 EH/s on Monday to 406 EH/s on Thursday.

Bitcoin hashrate. Source: CryptoQuant
Bitcoin hashrate. Source: CryptoQuant

Got something to say about Texas Bitcoin miners or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto platforms in the US | February 2024

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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