A sudden freeze in Texas has caused a significant drop in the Bitcoin hash rate, as miners in the state were forced to curtail operations to support the state’s energy grid.
According to data from YCharts, the total Bitcoin network hash rate fell by 34% from over 629 exahashes per second (EH/s) on January 11 to roughly 415 EH/s on January 15.
The hash rate partially recovered to over 454 EH/s on January 16 as temperatures briefly rose above freezing in Austin.
Texas accounts for about 29% of the Bitcoin hash rate in the United States, with many mining firms relocating there after China’s crackdown on crypto mining.
Several companies, including Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific, have operations in Texas.
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Unlike in 2021, when a winter storm caused widespread power outages, there were fewer reports of significant disruptions to Texas’ power grid this time.
Many mining firms participate in a program organized by the Electric Reliability Council of Texas (ERCOT) that compensates them for adjusting their load on the grid during periods of high demand.
Mining firms such as Marathon Digital and Riot Platforms confirmed that they curtailed operations to support the Texas electric grid and its citizens during the cold weather.
The drop in the Bitcoin hash rate due to the Texas freeze highlights the potential impact of extreme weather events on the cryptocurrency mining industry.
As of January 17, ERCOT reported that grid conditions in Texas were expected to return to normal starting at midnight local time
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