Almost all large Bitcoin miners have shut down as demand peaks
Nearly all industrial scale Bitcoin miners in Texas have shut off their machines as the companies brace for a heat wave that is expected to push the state’s power grid near its breaking point.
Miners may see a drop in profitability as the heat wave keeps their machines off by sending energy prices soaring and further stressing the state’s power grid. The miners are already struggling to repay debt and raise additional capital with Bitcoin prices in sharp decline. Shares of public miners have tumbled about 75% this year.
Texas’s grid has repeatedly shattered demand records this summer
The all-time peak record for energy usage was set Friday with 78,206 megawatts, breaking the previous unofficial all-time peak of 77,460 megawatts that occurred on July 5, according to data from the state’s power operator Electric Reliability Council of Texas. The operator has been working with Bitcoin miners, who are required to turn off their mining machines when the state faces energy shortages.
While Texas is likely to face more energy shortages in the future, ERCOT expects crypto miners to increase electricity demand by up to six gigawatts by mid-2023, more than enough to power every home in Houston.