Texas Tops U.S. States in Bitcoin Hashing Power with 28% Share
Summary:
Texas leads U.S. states in Bitcoin hashing power, holding 28% of the total, according to Foundry USA. The share of other states like Georgia, New York, and New Hampshire stands at 9.64%, 8.75%, and 5.33% respectively. The report shows growing participation in Bitcoin mining in 2022 compared to previous years. Texas has also emerged as a preferred destination for crypto mining due to lower energy costs and a supportive regulatory framework following China's ban on crypto mining in 2021.
Texas holds a 28% share of the total Bitcoin (BTC) hashing power in the U.S., as indicated by the most recent Hashrate Map from Foundry USA, a crypto mining services company. The freshly updated map shows Georgia following Texas with 9.64% of the U.S. Bitcoin hash rate, trailed by New York at 8.75% and New Hampshire at 5.33%. The Bitcoin hash rate quantifies the speed at which a mining machine functions to compute valid block hashes.
In contrast, back in December 2021, Texas controlled only 8.43% of the hash rate, while Georgia dominated with 34.17%. Kentucky and New York were at 12.40% and 9.53% respectively. 2022 saw more U.S. states taking part in Bitcoin mining activity. The global Bitcoin hash rate reached a record 400 EH/s by July 2023, which was nearly double of 174 EH/s at the end of 2021, Foundry noted.
The data was collected from July 21-27, 2023, a period during which Texas grappled with power restrictions. The report suggests that the hash rate of Texas might be even greater than reported, due to data acquisition during power restrictions. These power restrictions require Bitcoin miners to reduce their output to maintain equilibrium of energy supply and demand. A program in Texas allows large energy consumers, like Bitcoin miners, to receive incentives for flexible energy usage.
One such miner, Riot Platforms, participated in Texas' power restriction scheme. Although it mined less Bitcoin in August than in July, the company received over $31 million in power credits. Texas has been a preferred destination for crypto mining ventures, due to its pocket-friendly energy prices and friendly regulatory environment. The state's residential electricity rates, according to the Energy Information Administration, were $0.14 per kilowatt-hour (kWh) in January 2023, 8.3% lower than the national average rate of $0.15 per kWh, making it more affordable for large consumers like crypto miners. This has made the state an attractive location for major mining operations, especially after the 2021 Chinese ban on crypto mining.
Published At
9/27/2023 6:00:00 PM
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