Bitcoin hashrate has dropped by 34% during the cold weather in Texas

A sudden freeze in Texas contributed to a 34% drop in the Bitcoin hash rate as some miners were forced to curtail operations amid demand from the state's energy grid.

In the year Since January 14th, temperatures have dropped below freezing in many areas of Texas since February 2023. per second (EH/s) on January 11 to about 415 EH/s on January 15 – a 34% discount. The analytics station reported that on January 16th, the hash rate increased to more than 454 EH/s as temperatures in Austin rose above freezing.

A frozen gas infrastructure in Texas is the main cause of power outages in 2021, responsible for the deaths of about 240 people. With the help of wind power, the grid looks set to hold this week as wind chills dip below 0 degrees Fahrenheit. https://t.co/mJPovybKDV

— The New York Times (@nytimes) January 17, 2024

According to Foundry's data pool, Texas accounts for 29 percent of the Bitcoin hash rate in the United States. Many mining companies have moved from China to the state following the country's crackdown on BTC miners and crypto. Several firms, including Marathon Digital, Riot Platforms, BitDeer and Core Scientific, have operations in Texas.

Related: 1.5M Homes Could Be Powered by Power Recovered by Texas Miners

Unlike in 2021, when low temperatures and a sudden winter storm left many roads covered in ice and heavy snow left hundreds of homes without power, there were few reports of major disruptions to the Texas power grid. Many mining companies have joined a program organized by the Electric Reliability Council of Texas (ERCOT) that compensates them by adjusting their load on the state's power grid during times of peak demand.

“Marathon, along with other Bitcoin miners, have been reducing operations to support the Texas power grid, which has been struggling with sub-zero temperatures,” Charlie Schumacher, vice president of corporate communications at Marathon Digital, told Cointelegraph. . “This is how the system is supposed to work. Bitcoin miners act as a base load that goes off during extreme weather conditions, making it more and cheaper for people who need power in minutes.”

Riot's spokesman added:

“Riot actively participates in demand response programs, which allow ERCOT to control the company's load when necessary to balance the grid during extreme weather conditions.

In the case of Texas, high demand equates to high temperatures in the summer and winter, which can damage the state's energy infrastructure. In December 2022, Argo Blockchain reported a significant drop in activity at its Helios facility in Texas during the winter, mining 25% less Bitcoin than in November. As of Jan. 17, ERCOT reports that “grid conditions are expected to return to normal” starting at midnight local time.

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Update (Jan. 17 at 10:04 pm UTC): This article has been updated to include descriptions of Marathon Digital and Riot.