Bitcoin hash rate drops by up to 34% due to cold wave in North America and power conservation request in Texas
Texas power saving request
From November 13th to 17th, the hashrate of the Bitcoin (BTC) network decreased by 34% from a maximum of 629EH/s to 414EH/s. At the time of writing, it is trending at 440EH/s.
Source: Ycharts
This decrease is thought to be due to power usage restrictions associated with the cold wave in Texas, USA. Particularly in inland areas, the weather is extremely cold, with temperatures reaching as low as -56 degrees Celsius, causing loss of life and a series of power outages.
At the same time, the Electric Reliability Council of Texas (ERCOT) asked businesses to conserve electricity to ensure a reliable supply for all customers. Due to the legal system, it is believed that operations of Bitcoin mining machines based in the state have also been temporarily suspended.
TXANS Update—January 16, 2024: As a reminder, ERCOT has issued a Conservation Appeal for today, Jan. 16, from 6 – 9 am CT due to continued freezing temperatures and record-breaking demand. We ask that Texas businesses, government agencies , and residents conserve electricity…
— ERCOT (@ERCOT_ISO) January 16, 2024
According to MiningPoolStats, BTC’s total real-time hashrate dropped from 570EH/s on Sunday to 425EH/s on Tuesday morning. This reduction of 145EH/s equates to a power drop of more than 4 gigawatts based on the standard 30 Joules/TeraHash:J/TH for mining machines.
Ethan Vera, Luxor Technology’s chief operating officer (COO), told foreign cryptocurrency media The Block, “In order to support the Texas power grid and the people of the state, we have shut down our machines and significantly reduced our operations for several days.†“It was.â€
In Texas, the law requires Bitcoin miners to shut down power lines and redirect energy to other sources in the event of an emergency.
What is ERCOT?
The Electric Reliability Council of Texas (ERCOT) is an independent system operator (ISO) responsible for operating and managing Texas’ electric grid. It operates the grid for more than 90% of the state’s electricity supply and is responsible for ensuring a stable supply of electricity. Unlike other states, Texas has its own power grid, of which ERCOT plays a central role.
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Texas state and Bitcoin miner regulations
In 2021, its dominance plummeted as China tightened its grip on the industry, and the US, particularly Texas, became the new mining hub. According to July 2023 data, it accounts for 28.5% of the US Bitcoin hash rate, more than doubling from 8.4% in 2021.
Source: FoundryUSA
Texas has high temperatures and maintenance of mining equipment is difficult, but major mining companies are concentrated in Texas due to its low electricity costs, favorable tax system, and clear regulations.
In June 2023, two bills, SB 1929 and HB 591, were passed in the state. Miners with more than 75 megawatts of energy capacity were required to register with the Public Utility Commission of Texas and share data with ERCOT. HB 591 introduces tax exemptions for companies that make better use of wasted gas.
Major U.S. crypto mining companies listed on Nasdaq, including Marathon Digital Holdings, Riot Platforms, and Iris Energy, also have bases in Texas.
In August 2023, it was reported that these companies reduced electricity usage by more than 95% and allocated power resources to the local power grid when local electricity demand soared.
connection:“Bitcoin mining could also be a boon for the state’s power grid†debated in Texas
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