In June, high temperatures in Texas led to record electricity consumption and affected the operations of local Bitcoin miners. The Block reports.
On June 9, demand for electricity in the state peaked at 75,437 MW, according to ERCOT, the state’s main grid operator.
Many Texas-based miners have signed power-down agreements with providers for peak-demand periods.
BitDeer said that, while temperatures during the week were anomalous, the company responds as usual to rising energy consumption. When prices become too high, the firm curtails operations. BitDeer responds to signals from the retail electricity provider, ERCOT traders, and energy consultants.
“We reduced activity on June 7 toward the evening and will continue to do so, monitoring grid usage, as well as rising temperatures. We shut off power using automatic programmable triggers when electricity costs reach certain price levels,” BitDeer explained.
In May, Argo Blockchain reduced production of Bitcoin by more than 25%, with one of the reasons cited as weather conditions in Texas.
“Extreme temperatures probably cost us around 5 BTC. We voluntarily trimmed consumption a couple of times. Energy prices rose, and we put the capacity back into the grid,” commented Argo CEO Peter Wall.
New Video: Argo CEO @PeterGWall updates shareholders after the release of today’s operational update. #ARB $ARBKhttps://t.co/CVsk4YaHhM
— Argo (@ArgoBlockchain) June 7, 2022
Earlier, Riot Blockchain said it could suspend operations.
“During the week forecasts call for up to five days with 38ºC. […] We will cut the electricity and the energy we produce will go to the grid to support a couple of 300,000 households in the nearby community. We know what we’re doing, we are preparing and checking everything,” said the firm’s chief commercial officer Chad Harris at the Whinestone facility.
In February, Bitcoin farms in Texas were shut down due to a severe snowstorm.
In July 2021, the United States led the share of the Bitcoin hashrate and continues to dominate. Texas accounts for around 11% of the country’s hashrate, according to CCAF.
Fitch Ratings has warned that cryptocurrency mining could pose financial risks for American electric utilities.