This is the reason Bitcoin hashrate fell by 25% 3 months before the next halving.

Bitcoin's hashrate has experienced a 25% drop since the weekend, raising concerns about the security of the network ahead of the highly anticipated “halving” event.

Data from BTC.com shows a drop in global hashrate estimates from around 600 EH/s on Friday to around 450 EH/s on Tuesday.

Texas Cold Weather Affects Bitcoin Hashrate.

The Bitcoin hashrate drop coincided with a weather warning issued by the Electric Reliability Council of Texas (ERCOT) for January 14th and 17th due to extreme cold. ERCOT, which acts as the grid regulator for most of Texas, issued conservation appeals on Sunday, Monday and Tuesday, citing concerns about low operating reserves related to freezing temperatures, high demand and below-normal winds.

As reported by TheMinerMag, the drop in hashrate represents a drop in energy capacity of more than four gigawatts during this period. The main mining pool operator, Foundry USA Pool, contributed half of this decline, seeing it drop to roughly 77 EH/s from 155 EH/s yesterday, according to Mining PoolStats.

The impact extends to users of the Luxor Mining Pool and Marathon Digital, a Bitcoin mining company. Ethan Vera, chief operating officer of Luxor Technology, said the company's mining partners have significantly reduced operations over the past few days by shutting down machines to distribute power to the grid.

Marathon's vice president of corporate communications, Charlie Schumacher, emphasized that Texas-based bitcoin miners can act as a technological solution for the energy sector, as seen in recent days as a flexible base load that can be quickly scaled down to release power to others in times of crisis. .

Texas has emerged as a Bitcoin Mining Hub.

Texas has become an alternative hub for Bitcoin mining after China's dominance in crypto mining has declined. Texas miners argued that a symbiotic relationship between the industry and the state was mutually beneficial.

Several companies, including Marathon Digital, Riot Platforms and Iris Energy, have contributed to the boom in Bitcoin mining facilities in Texas, attracted by factors such as cheap electricity, grid incentives and the state's deregulated power market.

Texas-based bitcoin miners are used to requests for deductions from the state. For example, in August, Riot Platforms received a record $31.7 million in energy and demand response credits from ERCOT following a more than 95 percent reduction in energy use during the summer heatwave.

Similarly, Iris Energy received $2.3 million in energy credits during the same month, primarily due to voluntary curtailment at the Childress site in Texas.