The crypto-mining landscape in the United States is witnessing a significant alteration. The state of Texas has emerged as a dominant powerhouse, claiming a staggering 28.50% of the U.S. hashrate as of July 2023, a substantial increase from a meager 8.43% at the end of 2021, as reported by Foundry, the largest mining pool in North America. However, according to Kevin Zhang, senior vice president of mining strategy at Foundry, Texas’ hashrate share may be even higher due to aggregated data representation.
This rapid shift comes at the expense of previously leading states like Georgia. Despite advantageous conditions, such as low electricity cost and sustainable power sources, Georgia’s share plummeted from 34.17% to 9.64% within two years. This decline can be attributed to an exponential augment in Texan crypto mining operations. Simultaneously, states like New Hampshire and Pennsylvania witnessed a considerable surge in their U.S. hashrate shares, even as New York observed a marginal fall.
The escalating trend of negative pricing in the past decade has played a crucial role in this rearrangement. A notable surge of over 6% of all hour throughout 2022 was contributed by negative price in the country’s wholesale markets. Such an environment could promote growth in Texas, stirringly advantageous for Bitcoin miners. Brandon Arvanaghi, a Bitcoin mining engineer, labels this a “win-win” scenario.
Recent developments reflect the extent of this radical shift. Riot Platforms has identified August 2023 as a watershed moment. By utilizing a unique power strategy, the company managed to achieve a record of Power and Demand Response Credits worth $31.7 million in that single month, surpassing the total amount received in the entirety of 2022. This boosted the company’s mining potential while significantly reducing costs.
Notwithstanding the bear market, leading crypto entities are keen on expanding their spheres in Texas. Crypto mining powerhouses such as Riot, Core Scientific, Genesis Digital Assets, and Marathon Digital are being attracted to Texas, especially after China’s 2021 mining ban. The ‘Electric Reliability Council of Texas’ (ERCOT) offers credits that bolster company revenues alongside Bitcoin transaction verification rewards.
Despite Texas having swung open its doors wide to crypto miners following China’s ban, the broader implication of this shift warrants careful consideration, encompassing infrastructure, power distribution, and economic impact. One thing’s for sure, the ripples of these changes impact far beyond the borders of the Lone Star State.
Source: Cryptonews
