Bitcoin

Texas is home to nearly 30% of all Bitcoin hash rate — Foundry

The U.S. state of Texas accounts for over 28% of all Bitcoin (BTC) hashing power in the United States, according to the latest Hashrate Map by crypto mining service provider Foundry USA. 

The newly updated map shows Texas with 28.5% of all Bitcoin hash rate in the country, followed by the states of Georgia claiming 9.64% hash rate, New York with 8.75%, and New Hampshire accounting for 5.33%. Bitcoin’s hash rate represents how fast a mining machine operates when trying to calculate a valid block hash.

A snapshot of Foundry’s pool in December 2021 shows a different picture. At the time, Texas controlled 8.43% of the country’s hash rate, Georgia had 34.17%. Meanwhile, Kentucky stood at 12.40% and New York held 9.53% of the U.S. hash rate. Compared to 2021, more U.S. states are mining Bitcoin this year.

Overall, by July 2023, the Bitcoin global hash rate had reached 400 EH/s, nearly twice as high as at the end of 2021, when it stood at 174 EH/s, said Foundry. 

Hashrate Map in July 2023. Source: Foundry USA

The data was pulled between July 21-27, 2023, when Texas faced power curtailment. According to the report, the data captured during curtailments means that the Texas hash rate may be “higher than what’s reported on the map.”

During power curtailment, Bitcoin miners lower their production to balance energy supply and demand in the grid. Essentially, it is a way to balance energy consumption during peak times. In Texas, a program grants large energy consumers, such as Bitcoin miners, incentives for being flexible with energy use.

One of the Bitcoin miners participating in Texas’ curtailment program is Riot Platforms. In August, the company mined fewer Bitcoin than in July but received over $31 million in power credits from the state.

Texas has been evolving as a hub for crypto mining thanks to its cheaper energy and welcoming regulatory framework. The state’s electricity prices are below the U.S. average, according to data from the Energy Information Administration.

As of January 2023, Texas’s average residential electricity tariff was $0.14 per kilowatt-hour (kWh), an 8.3% discount compared to the national average of $0.15 per kWh. The costs are even lower for large consumers like crypto miners.

The state became a hotbed for large mining operations following China’s crackdown on crypto mining in 2021.

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