The recent Texas deep freeze has led to a substantial decline in the Bitcoin hash rate, as miners had to scale back operations to assist the state’s energy grid. YCharts data reveals a notable 34% reduction in the total Bitcoin network hash rate, dropping from over 629 exahashes per second (EH/s) on January 11 to approximately 415 EH/s on January 15. While the hash rate partially recovered to over 454 EH/s on January 16 during a temporary thaw in Austin, the impact of extreme weather on the cryptocurrency mining industry is evident.
Texas, comprising around 29% of the Bitcoin hash rate in the United States, has become a key location for mining operations following China’s crypto mining crackdown. Despite this setback, companies such as Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific, which have established operations in Texas, aim to navigate challenges posed by weather conditions.
Unlike the power outages experienced in 2021 due to a winter storm, Texas witnessed fewer significant disruptions to its power grid this time. Many mining firms participate in a program facilitated by the Electric Reliability Council of Texas (ERCOT), compensating them for adjusting their load during peak demand periods.
Acknowledging the importance of supporting the Texas electric grid and its residents during cold weather, mining firms like Marathon Digital and Riot Platforms confirmed the temporary reduction in their operations. This episode underscores the vulnerability of the cryptocurrency mining industry to the effects of extreme weather events. As of January 17, ERCOT reported an anticipated return to normal grid conditions in Texas starting at midnight local time.
