Bitcoin miners in Texas turn off their equipment in the face of a threatening heat wave – DiarioBitcoin

Texas could raise funds through NFT and harness 'abundant' energy to mine Bitcoin

Bitcoin miners in Texas turn off their equipment in the face of a threatening heat wave - DiarioBitcoin By Hannah Perez

Virtually 100% of industrial-scale crypto mining operations in Texas closed in the face of the weather event.

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  • Bitcoin miners in Texas close due to heat wave.
  • “More than 1,000 megawatts of Bitcoin mining load was turned off.”
  • At the beginning of 2022, a snow storm had already affected the miners of that state.

A heat wave is forcing miners to Bitcoin in Texas to close its operations.

According to reported Bloombergseveral major cryptocurrency miners based in Texas, USA, have shut down their machines in anticipation of a looming heat wave that threatens to strain the statewide power grid.

Reputable crypto mining companies like Riot Blockchain, Argo Blockchain Y Core Scientific They would be collaborating with the authorities of that locality to help reduce the pressure on the electrical network.

The miners would be responding to a request from the Electricity Reliability Council of Texas (ERCOT), responsible for managing the network in that region, which urged state residents on Sunday to try to conserve as much energy as possible to avoid blackouts and electrical outage incidents.

The president of the organization Texas Blockchain AssociationLee Bratcher, told Bloomberg thatover 1,000 megawatts of Bitcoin mining loadwhich account for nearly 100% of industrial-scale crypto mining operations in Texas, sand they were turning off in response to calls to conserve energy.

There are over 1,000 megawatts of Bitcoin mining load that responded to ERCOT’s request by turning off their machines to conserve power for the network. This accounts for nearly all of the industrial-scale Bitcoin mining load in Texas and allows more than 1% of the total network capacity to be returned to retail and commercial use.

Texas Crypto Miners Shut Down Due to Heat Wave

Core Scientific, which is listed on the stock exchange, confirmed that it had turned off all its mining machines in that state, where it currently has just under 15% of its production. “In challenging situations, including the current Texas heat event, we have been reducing power and will continue to reduce power as needed.CEO Mike Levitt said.

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Bloomberg added that riotanother major crypto miner, is, for its part, participating in an ERCOT program in which it has pledged to reduce energy consumption during the four summer months of peak energy demand at its facility. Whitstonelocated in Rockdale, Texas.

According to reports, the Texas heat event could threaten the operation of the state’s power grid, driving up prices and causing power outages. In the particular case of miners, who operate millions of energy-intensive computers to secure the blockchain of Bitcoin and earn rewards, the event could increase demand for air conditioning to keep equipment warm as the heat wave spreads.

The closure of operations for companies in that state represents a new challenge for minerswhich have seen a significant reduction in their profits in the face of the recent price drop in the markets.

as reported DailyBitcoinsome mining firms have been selling their bitcoin to pay off debts and keep operations going amid price turmoil. The extreme temperature event in Texas could certainly further affect the returns of crypto miners.

Energy Consumption Rises in Texas

In accordance with Bloomberg, the event has coincided with a new all-time record for energy use in Texas. On Friday, power consumption in that state was reported to have reached 78,206 megawatts. The figure surpassed the previous unofficial peak of 77,460 megawatts, which occurred on July 5, according to data from the state electric operator. Electric Reliability Council of Texas.

According to the report, even though Texas is expected to face more energy problems in the future, ERCOT anticipates that the demand for electricity by cryptocurrency miners in that state will continue to increase in the coming years and possibly reach 6 gigawatts by mid-2023 (or the equivalent to power every household in Houston).

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It is worth noting that Texas has become one of the most attractive destinations, within the United States, for cryptocurrency miners; mainly due to its low energy costs and friendly regulatory stance towards the new asset class.

This is not the first time that Texas crypto miners have been forced to close operations due to a weather event. At the beginning of the year, a winter storm had already caused the temporary cessation of mining activities in that state.


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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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