The recent deep freeze in Texas had a notable effect on the Bitcoin hash rate, as miners in the state had to scale back operations to aid the energy grid.
YCharts data reveals a substantial 34% decline in the total Bitcoin network hash rate, dropping from over 629 exahashes per second (EH/s) on January 11 to approximately 415 EH/s on January 15. A partial recovery occurred, reaching over 454 EH/s on January 16 when temperatures briefly rose above freezing in Austin.
Texas holds a significant 29% share of the Bitcoin hash rate in the United States, attracting mining firms following China’s crypto mining crackdown. Companies like Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific have established operations in Texas.
In contrast to 2021, when a winter storm led to widespread power outages, this time there were fewer reports of major disruptions to Texas’ power grid. Many mining firms participate in a program by the Electric Reliability Council of Texas (ERCOT), compensating them for adjusting their load on the grid during high-demand periods.
Mining giants such as Marathon Digital and Riot Platforms confirmed they scaled down operations to support the Texas electric grid and its residents during the cold spell. The decrease in the Bitcoin hash rate due to the Texas freeze underscores the potential impact of extreme weather events on the cryptocurrency mining industry. As of January 17, ERCOT reported that grid conditions in Texas were expected to return to normal starting at midnight local time.
