The Lone Star State Dominates Bitcoin Mining in the US
Texas has emerged as the leading state for Bitcoin mining in the United States, accounting for an impressive 28.5% of the nation’s hash rate. This estimate comes from Foundry, the world’s largest Bitcoin mining pool, which collected data directly from its users. The share of Texas’s hash rate was previously estimated at 8.4% in 2021, but it has since surpassed other states like New York and Georgia.
New York’s share dropped from 9.5% to 8.8% due to stagnant mining growth and regulations against fossil fuel-powered miners. Georgia saw a decline from 34.2% to 9.6%, primarily because a large miner from the previous sample did not participate in the current map.
Other states such as Nebraska, North Carolina, Kentucky, Oklahoma, and Washington also experienced significant decreases in their hash rate shares.
Texas’s Attractive Mining Environment
Texas has become an attractive destination for miners due to government incentives aimed at stabilizing the electricity grid. During periods of high stress on the grid, miners are requested to halt operations to ensure power availability for residents, with compensation provided later by ERCOT, the grid operator.
Riot and Foundry Expand Operations in Texas
Riot and Foundry have both expanded their mining operations in Texas. Riot CEO Jason Les highlighted how power credits provided by the state have significantly lowered their mining costs. Cipher Mining also purchased 11,000 mining machines for its Texas facility, further boosting the state’s mining capacity.
Data Discrepancies and Future Updates
Foundry’s data was sourced in July during a period of curtailment for Texas miners, suggesting that the 28.5% estimate may actually be higher. The University of Cambridge, another source of mining data, plans to update its mining map by early next year. They aim to ensure a large enough sample size and avoid overrepresentation by any single pool.
Hot Take: Texas Surges Ahead in Bitcoin Mining
With its favorable mining environment and government support, Texas has established itself as the leading state for Bitcoin mining in the US. The state’s hash rate share has skyrocketed to 28.5%, surpassing other contenders like New York and Georgia. As the industry continues to evolve, it is expected that Texas’s dominance will persist and even strengthen further.
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