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An abrupt freeze in Texas might have played a role in a 34% decline in the Bitcoin hash rate, as some miners had to reduce operations due to demands on the state's energy grid.
Starting on January 14, temperatures in various parts of Texas fell below freezing for one of the first times since a major ice storm in February 2023. YCharts data reveals that the total Bitcoin network hash rate dropped from over 629 exahashes per second (EH/s) on January 11 to approximately 415 EH/s on January 15, marking a 34% decrease. The hash rate later increased to more than 454 EH/s on January 16 when temperatures in Austin briefly rose above freezing.
Texas contributed around 29% of the Bitcoin hash rate in the United States, with many mining firms relocating there from China after the country's crackdown on BTC miners. Notably, Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific have operations in Texas. Despite the challenges, there were fewer reports of significant disruptions to Texas' power grid compared to the winter storm in 2021.
Mining firms in Texas have participated in a program by the Electric Reliability Council of Texas (ERCOT) that compensates them for adjusting their load on the state's power grid during high-demand periods. Marathon Digital's Charlie Schumacher highlighted that miners curtailing operations during extreme weather events help ensure energy availability and affordability.
In Texas, high demand is often associated with extreme heat in summer and winter conditions, potentially posing a risk to the state's energy infrastructure. Argo Blockchain previously reported a notable decrease in activity at its Texas Helios facility in December 2022 due to winter conditions. As of January 17, ERCOT stated that grid conditions are expected to be normal starting at midnight local time.
