Texas has emerged as the dominant player in the U.S. bitcoin mining space, according to data from Foundry USA, the world’s largest mining pool. Miners have flocked to Texas due to its pro-crypto regulatory environment and support from the local energy provider, ERCOT. The state has attracted many miners from southern and midwestern states like Nebraska, North Carolina, Kentucky, and Oklahoma.
Kevin Zhang, a veteran bitcoin miner with ten years of experience, is not deterred by crypto winters. He has weathered several bear markets and has always managed to survive. Zhang has set up mining operations in various locations around the world, including the U.S., Sweden, the Republic of Georgia, and China. He has now brought his expertise to Foundry, a mining firm under Barry Silbert’s crypto empire.
Bitcoin miners are now facing the challenge of the upcoming halving event, where the mining reward will be cut in half. This reduction in rewards could be catastrophic for many miners, especially those burdened by rising energy costs. However, Foundry is expanding its operations and diversifying its activities to mitigate the impact of the halving. They have launched a marketplace for buying and selling miners, a logistics arm for deployment and shipment, and a managed site services program to help customers with on-site mining operations.
Texas has become the crypto capital of the United States, attracting miners with its clean energy and favorable regulatory environment. The state has secured its dominant position in the bitcoin mining space with support from local authorities and ERCOT, the operator of the Texas energy grid. ERCOT offers incentives to bitcoin miners to help manage excess energy during low-demand cycles and allows them to sell back energy to the grid during high-demand periods. This arrangement benefits both the miners and the grid operators.
The research shows that negative pricing, where electricity prices drop below zero, has increased in wholesale markets in the U.S. This presents an opportunity for bitcoin miners to take advantage of excess renewable energy, as Texas rapidly integrates wind and solar into its grid. Miners can be paid slightly more than what they would have made mining for bitcoin, while the excess energy can be used to stabilize the grid.
Texas’s dominance in the bitcoin mining space is likely to continue as more miners see the benefits of operating in the state. The pro-crypto regulatory environment, support from local authorities, and access to abundant renewable energy make Texas an attractive destination for miners. As the U.S. leads the world in bitcoin mining, Texas has become the bitcoin capital of the world.
