The state of Texas dominates the Bitcoin mining scene in the United States, accounting for more than 28% of the country’s hashing power, according to the Hashrate Map by crypto mining service provider Foundry USA. Texas surpasses other states, with Georgia claiming 9.64% of the hash rate, followed by New York with 8.75% and New Hampshire with 5.33%. The hash rate represents the speed at which a mining machine operates to calculate a valid block hash in Bitcoin mining.
In December 2021, the scenario was different, as Texas only controlled 8.43% of the country’s hash rate, while Georgia held the majority with 34.17%. Kentucky followed with 12.40%, and New York had 9.53% of the U.S. hash rate. Compared to the previous year, more states in the U.S. have joined the Bitcoin mining market in 2023.
According to Foundry, the global hash rate for Bitcoin reached 400 EH/s by July 2023, nearly double the amount at the end of 2021, which stood at 174 EH/s. These numbers indicate significant growth in the Bitcoin mining industry worldwide.
The data for the Hashrate Map was collected between July 21 and 27, 2023, during an electricity power curtailment in Texas. The report highlights that the hash rate may be even higher than reported on the map due to the data captured during curtailments.
Power curtailment refers to the strategy employed by Bitcoin miners to reduce their production and balance energy supply and demand on the grid. It allows for the efficient use of energy during peak times. In Texas, a program incentivizes large energy consumers such as Bitcoin miners to be flexible with their energy usage.
One of the companies taking part in Texas’ curtailment program is Riot Platforms. In August, the company mined fewer Bitcoins than the previous month but received over $31 million in power credits from the state. This demonstrates the financial benefits that can be gained from participating in the curtailment program.
Texas has emerged as a favorable location for crypto mining due to its lower energy costs and supportive regulatory environment. The state offers electricity prices below the national average, making it attractive to miners. As of January 2023, Texas’s average residential electricity tariff was $0.14 per kilowatt-hour (kWh), representing an 8.3% discount compared to the national average of $0.15 per kWh. For large consumers like crypto miners, the costs are even lower.
The rise of Texas as a crypto mining hub can be attributed to China’s crackdown on crypto mining in 2021. This event prompted various mining operations to relocate, and Texas became an enticing destination for those seeking a more welcoming environment.
In conclusion, Texas has solidified its position as the leading state for Bitcoin mining in the United States, accounting for over 28% of the country’s hash rate. The state’s favorable energy prices and regulatory framework have attracted mining companies, resulting in significant growth in the industry. With the global hash rate for Bitcoin steadily increasing, the future of mining in Texas looks promising.
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