Bitcoin mining farms in Texas have gone offline because of a massive winter storm that drained the state’s power grid.

While some mining farms have stopped operations due to power outages, others are selling electricity back to the grid at a premium, said Ethan Vera, co-founder of Luxor Tech, which is a U.S.-based crypto mining company. Most mining farms are offline, Vera said. 

Due to the Texas outage, hashrate generated from Luxor’s mining pool has decreased by 40%. The majority of hashrate for the entire mining pool comes from the U.S. mining farms, Vera said. 

Crypto mining giant Bitmain built one of the world’s largest bitcoin mines in Rockdale, East Texas, in 2019. Peter Thiel-backed crypto mining company Layer1 Technologies started operating its bitcoin factories in West Texas in early 2020. Publicly traded bitcoin mining company Argo Blockchain (ARB) announced last week it intended to acquire land to build mining facilities in West Texas. 

Some mining farms are taking advantage of the situation by selling local residents their unused electricity.

Texas’ power grid has already lost a small portion of energy production over the last weekend because wind turbines were frozen and natural gas available to electric plants became scarce, according to Dan Woodfin, senior director of The Electric Reliability Council of Texas (ERCOT). 

By Sunday all types of energy sources, including nuclear plants, coal plants and thermal generators, were falling off the grid due to the winter storm, Woodfin said, according to a report in the Austin American Statesman.

The impact of the extreme weather conditions on bitcoin mining facilities goes beyond the Lone Star State. Mining farms in Kentucky have also been negatively affected by the storms.   

Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link

Bitcoin Mining Farms in Texas Offline From Winter Storm

by Mario Herndon
Choose A Format
Voting to make decisions or determine opinions
Formatted Text with Embeds and Visuals
The Classic Internet Listicles
Upload your own images to make custom memes
Youtube, Vimeo or Vine Embeds
Soundcloud or Mixcloud Embeds
Photo or GIF
GIF format