{"id":16709,"date":"2021-05-04T15:44:17","date_gmt":"2021-05-04T15:44:17","guid":{"rendered":"http:\/\/ci0282427d10002568"},"modified":"2021-05-04T15:44:17","modified_gmt":"2021-05-04T15:44:17","slug":"texas-a-mecca-for-bitcoin-mining","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/texas-a-mecca-for-bitcoin-mining","title":{"rendered":"How Texas Is Becoming A Mecca For Bitcoin Miners"},"content":{"rendered":"
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Texas might seem like an unlikely mecca for large scale bitcoin mining operations. Although energy prices in Texas are relatively cheap \u2014 a big draw for miners \u2014 the state\u2019s reserve margins are almost nonexistent, as was demonstrated by a recent ice storm that left some homes and businesses without power for up to four days.<\/p>\n

And when it comes to the cryptocurrency mining community, It\u2019s hard to know exactly who\u2019s located where and what exactly they\u2019re mining. But there\u2019s lots of anecdotal evidence that a significant bitcoin industry move to Texas is afoot. Bitcoin mining companies like Bitmain, Blockcap, Argo Blockchain, Great American Mining, Layer1, Compute North, Riot Blockchain and Whinstone are just a few of the major industry players that have chosen to set up shop in the Lone Star State.<\/p>\n

The Bitcoin Mining Energy Dynamic In Texas<\/h2>\n

Compared to many U.S. states, Texas energy rates are inexpensive<\/a>, although there are a few states that are slightly cheaper.<\/p>\n

This is still a strong selling point for bitcoin miners, but energy supply problems, with no end in sight as the population of Texas grows, is a potential problem.<\/p>\n

Meredith Angwin, author of \u201cShorting The Grid\u201d told Great American Mining\u2019s Marty Bent in a recent \u201cGAMcast\u201d interview<\/a> that Texas has \u201cthe skinniest of reserve margins\u201d when it comes to energy supply, as borne out in the recent ice storm.<\/p>\n

Angwin also noted that renewables like wind and solar are only available when it\u2019s sunny or windy and have to be backed up by natural gas.<\/p>\n

But it\u2019s the nature of bitcoin mining that miners \u201cseek out extremely cheap sources of energy which tend to be stranded renewables or fossil fuels like natural gas and oil via flaring or venting that would otherwise be wasted,\u201d said Bent in a recent podcast<\/a>.<\/p>\n

Despite the challenges Angwin noted, Argo Blockchain<\/a> is setting up in West Texas, using renewables (mostly wind) and natural gas as backup.<\/p>\n

\u201cWe chose West Texas and this site in particular because it offers us some of the lowest electricity rates in the world and the majority is from renewable sources, namely wind and solar,\u201d CEO Peter Wall told Bitcoin Magazine <\/em>recently.<\/p>\n

Gas Vent Capture<\/h2>\n

Other miners may find an answer in oil and gas vent capture technology<\/a> pioneered by Upstream Data<\/a>. Mining companies that use gas-vented capture technology are in a good position in Texas, with its many oil and gas producers.<\/p>\n

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Another 8'x4; Hash Hut with 2x genset inputs is connected and consuming natural gas that would have otherwise been vented to atmosphere. <\/p>\n

This producer is a large pubco and this is their first foray into mining their very own #bitcoin<\/a>!<\/p>\n

May their \ud83c\udf3d harvest be plentiful \ud83d\ude02 pic.twitter.com\/szscJmyasW<\/a><\/p>\n

— Upstream Data (@upstreamdatainc) March 12, 2021<\/a><\/p><\/blockquote>\n