The energy crisis in the US hurt bitcoin miners

by in Cryptocurrency News


Due to abnormally cold weather in the United States, there are problems with the power supply of Texas. Local mining farms were de-energized, which led to a significant drop in hash rates.

For example, the capacity of only one mining firm, Luxor Tech, fell 40%, said its co-founder Ethan Vera. According to him, most of the farms in the state are already disconnected from the network.

It is difficult to say how the shutdown of Texas farms affected global computing power, but it is known that not only Luxor but also other companies such as Bitmain and Layer1 are operating in this US state. These giants have launched crypto mining businesses here due to cheap electricity.

For example, Bitmain in Texas launched one of the largest BTC mining farms in 2019. Layer1 has been mining in West Texas since early 2020.

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The Texas power grid has been paralyzed by the suspension of wind turbines caused by a cold snap in the state.

Last Sunday, by order of the authorities, nuclear and coal power plants were suspended due to a winter storm that hit not only Texas but also neighboring states. Many mining farms have also been shut down in Kentucky.

Bitcoin network capacity is falling this week, this may be due to the shutdown of Texas farms. According to the latest data, the BTC hashrate dropped to 156 EH/s.