US State of Texas Emerging as a Major Player in Bitcoin Mining!

• Texas has solidified its position as a dominant force in the world of Bitcoin mining, contributing more than 28% of the total Bitcoin hash rate in the United States.
• This places Texas far ahead of its closest competitors; Georgia, for example, is said to have a hash rate of 9.64%.
• These changes in mining dynamics indicate increasing participation in Bitcoin mining by U.S. states in 2023.

Texas has solidified its position as a dominant force in the Bitcoin mining world and has leapfrogged other states in the United States.

Texas is Rising in Bitcoin Mining

Texas has solidified its position as a dominant force in the world of Bitcoin mining, contributing more than 28% of the total Bitcoin hash rate in the United States. According to the latest data from crypto mining services provider Foundry USA, Texas’ rapid rise in Bitcoin mining is attributed to factors such as favorable energy prices and a lenient regulatory environment.

According to Foundry’s updated Hashrate Map, Texas has emerged as the clear leader in Bitcoin hash rate. This state accounts for 28.5% of the country’s total hash rate. This places Texas far ahead of its closest competitors; Georgia is said to have a hash rate of 9.64%.

New York has an 8.75% share, and New Hampshire has a 5.33% share. Bitcoin’s hash rate measures the computing power dedicated to mining, showing how quickly mining machines can calculate valid block hashes.

Looking back at December 2021, when Texas held only 8.43% of the country’s hash rate, you can see the significant rise of Texas in this regard. Georgia led during that period with 34.17%. Kentucky and New York held 12.40% and 9.53% shares, respectively.

These changes in mining dynamics indicate increasing participation in Bitcoin mining by U.S. states in 2023. By July 2023, Bitcoin’s global hash rate had surged to an impressive 400 exahashes per second (EH/s), almost double the level it was at the end of 2021, which was 174 EH/s, as reported by Foundry.

It’s worth noting that the data collected between July 21-27, 2023, coincided with power outages in Texas. During these periods, Bitcoin miners reduced their production to align with the energy supply and demand on the grid. This practice is necessary to maintain a stable energy grid, especially during peak consumption times. Large energy consumers like Bitcoin miners are incentivized to do so due to their flexibility in energy consumption.

Texas: The Star of Bitcoin Mining

Texas has slowly emerged as a hub for crypto mining thanks to cost-effective energy resources and a supportive regulatory framework. According to data from the Energy Information Administration, Texas has below-average electricity prices on a national scale.

As of January 2023, the average residential electricity rate in Texas stood at a competitive $0.14 per kilowatt-hour (kWh), offering an 8.3% discount compared to the national average rate of $0.15 per kWh. Cost advantages become even more pronounced for large consumers like crypto miners.

Texas’ rise as a powerhouse in the field of crypto mining came after China cracked down on crypto mining activities in 2021. With ample and economical energy resources, a lenient regulatory environment, and competitive electricity rates, Texas seems poised to maintain its leadership position in Bitcoin mining.