According to Cointelegraph: Extreme drop in temperatures in Texas in mid-January compelled some Bitcoin miners to reduce operations, resulting in a significant 34% drop in the Bitcoin hash rate. As temperatures in several parts of Texas plunged below freezing, the total Bitcoin network hash rate fell from over 629 exahashes per second (EH/s) on January 11 to nearly 415 EH/s on January 15, as per YCharts data.
On January 16, the hash rate recovered slightly to above 454 EH/s as temperatures in Austin rose above freezing temporarily. According to data from Foundry’s pool, approximately 29% of the US Bitcoin hash rate is from Texas. Post the Chinese crackdown on Bitcoin mining, numerous companies, including Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific, have shifted their operations to Texas.
The good news is, despite the chilling temperatures, power outages were less severe than the ones experienced in 2021 due to winter storms. Several mining firms participate in a unique program by the Electric Reliability Council of Texas (ERCOT), which reimburses companies for reducing their load on the state's power grid during high demand.
Charlie Schumacher, Marathon Digital’s Vice President of Corporate Communications, said that Bitcoin miners were reducing their operations to support the Texas electric gird, providing more cheaper and abundant energy to citizens in extreme weather. Riot, another miner, confirmed their participation in demand response programs, assisting ERCOT in managing their load to balance the grid during challenging weather conditions.
Argo Blockchain had reported a significant activity drop in December 2022 due to winter conditions at its Texas-based Helios facility, mining roughly 25% fewer Bitcoins than in November. As of January 17, ERCOT reports expectations of a return to normal grid conditions.
