Due to a severe cold snap in Texas, the local electricity grid regulatory agency ERCOT implemented power restrictions, resulting in a 25% decrease in the Bitcoin network’s computing power from 600 EH/s to 440 EH/s. This decrease in computing power was primarily caused by Foundry USA Pool, which accounted for nearly 50% of the overall network’s decline in computing power.
According to TheMinerMag’s previous report, the decrease in computing power was mainly caused by Foundry USA Pool, which saw a reduction of up to 75 EH/s in mining power from its clients. As of September, over 28% of the computing power connected to Foundry Pool was located in Texas, making this decline closely related to the power restrictions in Texas.
Data from MiningPoolStats shows that since Sunday, both Foundry USA Pool and AntPool have experienced significant drops in computing power, with these two largest Bitcoin mining pools accounting for over 70% of the overall network’s decline in computing power.
As of now, with ERCOT announcing the end of weather alerts early this morning, the computing power of Foundry USA Pool and AntPool has respectively recovered to 146.54 EH/s and 125 EH/s.
This incident not only highlights the impact of local policies on Bitcoin mining activities but also demonstrates the unique advantage of Bitcoin mining activities in terms of “convenient interruption of operations.” Charlie Schumacher, Vice President of Corporate Communications at Marathon Digital, one of the three major mining companies affected by this incident in North America, stated:
“Texas has become a Bitcoin mining center after China, since the crackdown on the mining industry in 2021. Miners believe that their mining activities are beneficial to the Texas power grid because their flexible use of electricity can strengthen the state’s grid by reducing electricity demand during peak periods and increasing power supply during low periods.”
Texas has attracted multiple companies, including Marathon Digital, Riot Platforms, and Iris Energy, to establish mining facilities in the state due to its cheap electricity, grid incentives, and deregulated energy market. According to Foundry’s report in September, American Bitcoin miners using its Texas pool accounted for 28.5% of the total U.S. computing power, surpassing the previous year’s 8.4% and ranking highest among all states in the U.S.
The Bitcoin mining industry in Texas is also actively involved in managing electricity demand. For example, Riot Platforms received a $31.7 million electricity and demand response loan from ERCOT in August as an incentive to reduce its electricity consumption by over 95% during the summer. Iris Energy also received a $2.3 million energy loan in the same month for voluntarily reducing its power usage.
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