Bitcoin Hashrate Plummets by 33% Amid Miner Shutdowns in Texas

The total computational power of the Bitcoin network fell by 33% over several days due to cold weather in Texas, which led to local miners being disconnected from the power grid.

According to BitinfoCharts, the figure dropped from 606 EH/s (as of January 13) to 401 EH/s. Data from Glassnode shows similar declines: from 630 EH/s (as of January 11) to 413 EH/s.

One of the main sources of the decline was the largest mining pool, Foundry USA Pool. The hash rate controlled by the structure plummeted during this period from 157 EH/s to 85 EH/s, according to MiningPoolStats.

Following the crackdown on the Bitcoin mining industry in China in 2021, Texas became one of the global centers for mining. As of September 2023, approximately 28% of the capacities of Foundry USA Pool participants were located in this American state, according to TheMinerMag.

On January 14, the main regional grid operator ERCOT asked residents and businesses to take measures to conserve electricity due to “freezing temperatures, record demand, and unseasonably low winds.”

TXANS Update—Jan. 14, 2024: ERCOT has issued a Conservation Appeal for Monday, Jan. 15, from 6 – 10 a.m. CT. Operating reserves are expected to be low tomorrow morning due to continued freezing temperatures, record-breaking demand, and unseasonably low wind. We request Texas… pic.twitter.com/EGBg8zliSs

— ERCOT (@ERCOT_ISO) January 14, 2024

The cold snap also affected clients of Luxor Mining Pool and the largest public miner, Marathon Digital.

“Luxor partners significantly reduced operations in recent days, shutting down installations to return power to the grid,” said The Block quoting the company’s COO, Ethan Vera.

Marathon Vice President Charlie Schumacher confirmed to the publication that many cryptocurrency miners in Texas scaled back operations during the cold spell.

“Bitcoin miners, among other things, are a technological solution for the energy sector. In Texas, they serve as a base load that can be reduced in minutes to free up energy for others during a crisis. This is exactly what we have observed in recent days,” he added.

The second-largest pool, Antpool, also experienced a significant hash rate reduction of about 30%. Altogether, the share of the platform along with Foundry USA Pool in the decline of Bitcoin’s computational power during these days amounted to 70%.

According to calculations by TheMinerMag, during this period, equipment with a capacity of at least 4 GW was shut down globally.

Experts from CoinShares predicted a hash rate decline to 450 EH/s before the halving and a further drop to 410 EH/s.