Texas Dominates Bitcoin Hashing Power in the United States
A recent Hashrate Map by Foundry USA, a crypto mining service provider, reveals that Texas holds more than 28% of all Bitcoin (BTC) hashing power in the United States. This makes Texas the leading state in terms of Bitcoin hash rate, followed by Georgia with 9.64%, New York with 8.75%, and New Hampshire with 5.33%. The hash rate represents the speed at which a mining machine calculates a valid block hash.
Changes in Mining Landscape
The map also highlights changes in the mining landscape compared to December 2021. At that time, Texas controlled only 8.43% of the country’s hash rate, while Georgia had 34.17%. However, this year has seen an increase in the number of U.S. states involved in Bitcoin mining.
Global Hash Rate Growth
According to Foundry, the global hash rate for Bitcoin reached 400 EH/s by July 2023, nearly double the figure recorded at the end of 2021 (174 EH/s).
Power Curtailment and Bitcoin Mining
The data for Texas was collected during a period of power curtailment in July 2023. During these curtailments, Bitcoin miners reduce their production to balance energy supply and demand on the grid. This helps manage energy consumption during peak times. In Texas, a program incentivizes large energy consumers like Bitcoin miners to be flexible with their energy use.
Riot Platforms and Texas’ Curtailment Program
Riot Platforms is one of the Bitcoin miners participating in Texas’ curtailment program. Although the company mined fewer Bitcoins in August compared to July, it received over $31 million in power credits from the state.
Texas as a Hub for Crypto Mining
Thanks to its affordable energy prices and favorable regulatory framework, Texas has emerged as a prominent hub for crypto mining. The state’s electricity prices are below the national average, making it attractive to miners. In January 2023, the average residential electricity tariff in Texas was $0.14 per kilowatt-hour (kWh), an 8.3% discount compared to the national average of $0.15 per kWh.
China’s Crackdown and Texas’ Rise
Texas experienced a surge in large-scale mining operations following China’s crackdown on crypto mining in 2021.
Hot Take: Texas Leads the Way in Bitcoin Mining Power
Texas has cemented its position as a dominant force in Bitcoin mining within the United States. With over 28% of the country’s hashing power, Texas offers favorable conditions for miners, including cheaper energy prices and a supportive regulatory environment. The recent increase in mining activity by other U.S. states indicates the growing interest and adoption of Bitcoin mining across the country. As global hash rates continue to rise, Texas remains at the forefront of this evolving industry, attracting significant investment and contributing to the decentralization of Bitcoin mining.
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