Bitcoin Hash Rate Dips 34% in Texas Freeze: Impact on Mining Industry

Bitcoin in a Freeze: How Texas Cold Affects Crypto Mining and What Comes Next.

Jan 18, 2024 - 01:56
Jan 18, 2024 - 01:56
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Bitcoin Hash Rate Dips 34% in Texas Freeze: Impact on Mining Industry
Bitcoin Hash Rate Dips 34% in Texas Freeze: Impact on Mining Industry

The recent freeze in Texas has put a freeze on Bitcoin mining too. The state's miners had to hit pause to help out with the struggling energy grid. YCharts data spills the beans – the overall Bitcoin hash rate nosedived by a whopping 34%, going from over 629 exahashes per second (EH/s) on January 11 to roughly 415 EH/s on January 15. Luckily, things warmed up a bit, and the hash rate bounced back to over 454 EH/s on January 16 when Austin saw a temporary thaw.

Texas plays a big role, contributing about 29% to the Bitcoin hash rate in the United States. Many mining big shots, including Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific, call Texas home sweet home after China's crypto mining crackdown.

Unlike the winter chaos in 2021 that left Texas in the dark, this time, power grid issues were fewer. Credit goes to mining firms enrolled in a program by the Electric Reliability Council of Texas (ERCOT), which rewards them for being flexible with their grid usage during high-demand times.

Marathon Digital and Riot Platforms, two major players, confirmed they scaled down operations to lend a hand to the Texas electric grid and its chilly residents. The Bitcoin hash rate doing the Texas two-step shows how weather extremes can throw a curveball at the cryptocurrency mining scene. According to ERCOT on January 17, Texas grid conditions were getting back to normal, with a fresh start expected at midnight local time. Stay warm, Texas!

Also Read: Bitcoin's Price Moves Near $47,000 as People Await ETF Approval

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