Wyoming's Bitcoin Mining To Be Powered By Publicly Traded Utility Company

Texas Comptroller’s Office Claim Bitcoin Mining can be Beneficial to the State

  • Bitcoin mining has become less profitable following the market crash.

China was formerly the leading country in Bitcoin mining, but all that changed after the Asian giant banned crypto trading and mining activities. Following China’s crackdown on mining, the United States stepped in to fill the void. As a result, mining activities soared in several US states, including Texas.

Although bitcoin mining is said to be power-intensive, officials in Texas believe mining activities can forge a complementary relationship with the energy sector. The Texas Comptroller’s office released a publication where it disclosed its pro-crypto stance to attract long-term miners and operators.

The letter emphasized that cryptocurrency mining facilities do not place significant electrical demands on the grid compared to manufacturing facilities, which can last for decades. The publication sought to correct the common misconception about Bitcoin’s energy consumption.

Fears about energy consumption linger as more cryptocurrency miners move to Texas. Several experts are concerned that the growing surge will disrupt the balance between supply and demand. One of the issues mentioned in the newsletters by Texas-based research associate Joshua Rhodes was that bitcoin mining facilities might be gone quickly depending on the price of bitcoin. At the same time, other energy-intensive businesses often continue their production despite market volatility.

The study also claimed that increased mining operations could encourage the development of more energy infrastructure, particularly in isolated parts of West Texas. Considering the operational mode of the crypto mining industry, Texas officials believe miners can participate in demand response schemes, which include turning off their power during periods of high demand. Other energy-intensive sectors, like petrochemical plants, frequently use this method.

This news comes a month after miners in Texas had to halt their operations due to an unexpected heatwave. Officials noted that mining operations combined with the heatwave could seriously affect the state’s power grid.

How has the Bear Market Affected Bitcoin Mining?

The crypto bear market has affected every part of the industry, including mining activities. According to reports, public miners lowered their overall BTC holdings by 25% in July and sold 400% of their June production.

Among the companies selling were Bitfarms, which liquidated more than half of its BTC supply to reduce debt, and Core Scientific, which sold $165 million worth of its Bitcoin assets to improve liquidity. According to Sabre 56 CEO Phil Harvey, one of the causes of the strain has been the lack of space to plug in and operate mining machines.

Despite the downtime in the mining industry, a recent report showed that BTC mining revenue increased by about 69% in a single month, from $13.928 million on July 13 to $23.488 million on August 12. Additionally, cheaper mining equipment (GPU) prices have allowed miners to upgrade and improve their rigs as they all work to mine the final 2 million BTC.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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