The Bitcoin network’s hashrate experienced a 25% drop after extreme weather in Texas led to power grid failures, halting mining operations. This highlighted Texas’s significant role in the mining industry, drawing analysts’ attention.
Data from MiningPoolStats showed a global hashrate decline from 600 EH/s on January 12 to 450 EH/s by January 16, coinciding with weather warnings due to extreme cold from January 14 to 17. Authorities urged businesses and residents to conserve electricity if safe to do so.
Foundry USA Pool, one of the largest mining pool operators, saw its hashrate halve from 155 EH/s to 77 EH/s, accounting for much of the overall drop. Luxor Mining Pool users were also affected, with significant operational reductions to allocate power back to the grid.
China’s dominance in Bitcoin mining waned after regulatory bans in 2021, with Texas emerging as an alternative hub. Major mining firms like Marathon Digital, Riot Platforms, and Iris Energy have been drawn to Texas for its cheap electricity, grid incentives, and free energy market.
A report by Foundry in September noted that U.S.-based Bitcoin miners in Texas contributed to 28.5% of the country’s hashrate, the largest share among states, more than doubling from 8.4% in 2021.
