Bitcoin Miners Hit Pause In Texas As Energy Crisis Stalls Operations

Bitcoin miners in Texas are temporarily powering down their operations amid the state's ongoing energy crisis.

Texas, known for its affordable energy and accommodating regulations, is a favored location for mining giants like Riot Platforms Inc. RIOT and Marathon Digital Holdings Inc. MARA

However, as the state confronts severe power challenges, exacerbated by recent extreme weather events, the Biden administration announced a power emergency.

Lee Bratcher, the Texas Blockchain Council's president, said, "We have consistently been seeing 90% plus curtailment of Bitcoin mining each day this week that power conditions tightened."

Bratcher added that the only power not curtailed was essential for office buildings and backup systems.

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Also Read: Bitcoin's Next Big Move? 'Mid-Cycle Lull' Signals November 2024 Bull Run, Expert Predicts

Industrial Bitcoin BTC/USD miners also suspended their operations during a previous heat wave, indicating the challenges faced due to fluctuating Bitcoin prices, rising electricity costs, and increased competition.

However, some have navigated these challenges by securing affordable long-term power contracts or by joining programs offered by the Electric Reliability Council of Texas.

For instance, Riot earned an impressiveB $31.7 million in power credit in August by reselling pre-bought electricity.

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