Benzinga - Bitcoin miners in Texas are temporarily powering down their operations amid the state's ongoing energy crisis.
Texas, known for its affordable energy and accommodating regulations, is a favored location for mining giants like Riot Platforms Inc. (NASDAQ: RIOT) and Marathon Digital Holdings Inc. (NASDAQ: MARA)
However, as the state confronts severe power challenges, exacerbated by recent extreme weather events, the Biden administration announced a power emergency.
Lee Bratcher, the Texas Blockchain Council's president, said, "We have consistently been seeing 90% plus curtailment of Bitcoin mining each day this week that power conditions tightened."
Bratcher added that the only power not curtailed was essential for office buildings and backup systems.
The evolving dynamics of cryptocurrency and its infrastructural challenges are set to be a focal point at Benzinga's Future of Digital Assets conference on Nov. 14, where industry experts will provide priceless insight into the current landscape and future prospects of digital assets.
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Industrial Bitcoin (CRYPTO: BTC) miners also suspended their operations during a previous heat wave, indicating the challenges faced due to fluctuating Bitcoin prices, rising electricity costs, and increased competition.
However, some have navigated these challenges by securing affordable long-term power contracts or by joining programs offered by the Electric Reliability Council of Texas.
For instance, Riot earned an impressiveB $31.7 million in power credit in August by reselling pre-bought electricity.
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