Texas Crypto Miners Turn Power into Profit: How Bitcoin Mining is Reshaping the Energy Game
The United States leads the world in Bitcoin mining, with Texas hosting more miners than any other state combined, according to The Economist. Following the devastating winter storm Uri in 2021, which left 4.5 million Texans without power and claimed 300 lives, Governor Greg Abbott embraced cryptocurrency mining. He believed that the increased demand for electricity would incentivize energy producers to generate more power and ultimately improve grid reliability. Around that time, many crypto miners secured long-term contracts with fixed rates for up to a decade.
A decade later, during periods of peak demand, such as during extreme cold in winter or intense heat in summer, crypto miners either sell their reserved energy back to providers or are compensated to reduce their energy usage. In August last year, one crypto mining company earned $32 million from energy arbitrage—nearly four times its Bitcoin production revenue.
Original article here:
The Economist