Three years ago, bitcoin miners flocked to the state of Texas. The Lone Star State offered cheap power, plentiful supplies of renewable energy, and an accommodating regulatory climate. Some mining companies already operated there, but when China banned crypto mining in May 2021, a mass migration began. Texas was fast becoming “a Mecca for bitcoin miners,” said Greg Abbott, the state governor. But lately, the mood has shifted.
declined to provide up-to-date figures. The prospect of more miners tapping the Texas grid has sparked concern among stakeholders who believe, variously, that the influx of mining activity will lead to blackouts, increase the price of energy for consumers, drive up carbon emissions, and damage Texans’ quality of life.
grid.” Before the recent surge in the price of bitcoin, which has made mining more profitable, news reports noted that some firms made more money by switching off and collecting fees when the grid was under pressure than they were through mining bitcoin. In August 2023, when a Texas heatwave led to a surge in energy demand, Riot said it earned $31.7 million through its participation in grid stabilization programs and only around $10 million from mining.
said it “does not comment on specific facilities’ power usage.” In a statement, the EIA said it hoped in the future to “provide the American public with a clear understanding of energy use from cryptocurrency mining.” In a pro-business state like Texas, says Shelley, even full access to data is unlikely to help activists campaigning for a blanket ban on mining. “It’s a high bar to convince Texas regulators to start restricting an industry,” he says.