March 27, 2024
Texas Emerges as the leader in U.S. Bitcoin Mining, Controlling 28.5% of Hash Rate
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Texas Emerges as the leader in U.S. Bitcoin Mining, Controlling 28.5% of Hash Rate

Texas, often known as the Lone Star State, has surpassed competitors to become the top U.S. state for Bitcoin mining, housing an astounding 28.5% of the country’s hash rate.

The estimate was compiled and published by Foundry, the biggest Bitcoin mining pool in the world, using data that was collected straight from its users. The company’s previous estimation for Texas’ hash rate share was 8.4% for 2021.

While still high by historical standards, it was at the time topped by states like New York (9.5%) and Georgia (34.2%), whose respective percentages have since dropped to 8.8% and 9.6%, respectively.

A significant miner from the 2021 sample that did not participate in the 2023 map contributed to Georgia’s sharp decline, although expansion in Texas also played a role. Since a decree banning miners who use fossil fuels went into force last year, New York’s mining industry has been growing slowly.

Significant dips were also recorded in Nebraska, North Carolina, Kentucky, Oklahoma, and Washington, among other states.

Texas has done its bit to promote mining by offering financial incentives intended to persuade miners to contribute to the stabilization of the electrical grid. The grid operator, ERCOT, encourages miners to halt operations and keep electricity accessible for residents in their homes when the system is at its most pressured during harsh summers and winters. ERCOT then reimburses businesses afterwards for their involvement.

Riot CEO Jason Les stated that the state’s power credits “significantly lower Riot’s cost to mine Bitcoin” in a news statement earlier this month. Following a competitor’s May acquisition of 11,000 mining equipment for its Texas operation, Cipher Mining, the company now has significant development ambitions in the counties of Navarro and Milam.

Additionally, Foundry has increased its operations within Texas by purchasing mining locations from Compute North’s bankruptcy estate. Compute North was a mining company that failed last year as a result of pressure from the weak market.

The business now thinks their 28.5% estimate may be low because Foundry’s data was gathered in July, a time of significant constriction for the region’s miners.

Although their mining map hasn’t been updated since January 2022, the University of Cambridge also makes available public statistics on Bitcoin hash rate and power use. Texas only accounts for 11.2% of the US hash rate, according to the most recent version.

Alexander Neumueller, Cambridge Research Lead for Digital Assets Climate Impact, stated that his team plans to update its mining map by “early next year,” although he was unable to give a precise time frame.

“When we publish an update, what is very important to us is to ensure a large enough sample size and no single pool constituting an overly large part of the sample,” he stated.

The second-largest pool after Foundry, ANTPOOL, has been added to Cambridge’s list of collaborating pools thus far.

“Personally, the large increase in Texas’s share does not come as a surprise given conversations I have had with industry stakeholders. I expect that the landscape today looks noticeably different than our last data point in January 2022, particularly concerning China and Kazakhstan.” He concluded.

Image: Wallpapers.com

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