Grassroots movement pays off
The Chamber of Digital Commerce, a US blockchain industry group, announced on the 30th that an “anti-bitcoin mining bill” submitted to the Texas legislature was not voted on and passed into law.
Check out our statement below. pic.twitter.com/MY326ggyF7
— Chamber of Digital Commerce (@DigitalChamber) May 30, 2023
Anti-Bitcoin Mining Bill in Texas Buried. The Digital Chamber of Commerce, along with the Texas Blockchain Council and Satoshi Action Fund, have successfully defeated an anti-Bitcoin mining bill.
The bill, known as SB1751, is a demand response program for the state’s power grid, ERCOT, that would limit the total amount of electricity that bitcoin mining companies can “sell” to ERCOT. The Demand Response Program pays cooperating companies “power credits” by shutting down operations when demand on the grid spikes. The bill would limit participation in the program to 10%.
It also included the abolishment of tax exemptions for mining companies that apply to industries with similar electricity consumption.
The state Senate unanimously passed SB1751 in April. Immediately after that, industry groups such as the Digital Chamber of Commerce launched a “Don’t Disturb Texas Innovation” campaign. He organized opposition groups in Texas and across the country, urging lawmakers to oppose the bill through phone calls, letters, and social media. More than 5,000 people are said to have taken part in the movement.
Such grassroots efforts were so successful that SB 1751 was never brought to a committee vote in the Texas House of Representatives and the bill was blocked.
“This victory ensures the continuation of energy innovation in the United States and underscores the power of the Bitcoin community,” said Dennis Porter, co-founder and CEO of the Satoshi Action Fund, a Bitcoin advocacy group. It is.”
Texas and mining companies
Texas Governor Abbott is known to be supportive of bitcoin mining, and in 2021, when mining was banned in China, the state was aggressive in attracting mining companies.
Due to deregulation, the state of Texas has abolished fixed tariffs and adopted a system in which electricity tariffs fluctuate according to power demand. Unlike hospitals and other industries where a stable power supply is essential, mining companies can even shut down their machines depending on the demand and price of electricity at any given moment, thus avoiding grid power supply during peak hours. can also support
In fact, due to the effects of heat waves and cold weather, mining companies have taken measures to suspend operations when power saving is requested in Texas.
connection:US state of Texas, cryptocurrency mining company temporarily suspends operations, tight power supply and demand
In return, mining companies are given “electricity credits” that can be used to pay their electricity bills, leading to a reduction in overall operating costs, a factor that cannot be ignored in management.
Financial data from mining giant Riot Blockchain reveals that the company will receive $6.5 million in power credits in 2021 and $27.3 million in 2022, accounting for 3% and 10% of annual revenue, respectively. Became. Including the power credits, the average mining cost per 1 BTC in 2022 will be $11,225, down 6% from the previous year.
connection:US-listed mining company Riot announces full-year financial results
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