Ahead of a Cold Blast, Texas’s Biggest Bitcoin Miner Shuts Down

• The Whinstone mine cut power use or closed down completely for nearly eight days in February 2021, while winter storm Uri caused outages across the state. The factory reduces its power consumption or closes down for up to 275 hours per year

• Computing Northern, a Minnesota-based data center that offers crypto mining services, has announced that it will shut down its 11 megawatt Texas facility to save energy. Within 10 minutes, Compute North could shut down the Texas data center

•  on Tuesday morning, according to company spokesperson Trystine Payer. By Wednesday, its mine had reduced its energy consumption by nearly 98%

Riot Blockchain Inc., a cryptocurrency miner, has shut down much of its massive Bitcoin-making operation in Texas to save electricity as the state’s power grid faces its most severe test since last year’s catastrophic blackouts.

Riot began deliberately reducing energy to Bitcoin mining servers now at Whinstone plant, situated northeast of Austin, on Tuesday morning, according to company spokesperson Trystine Payer. By Wednesday, its mine had reduced its energy consumption by nearly 98 percent. On Monday, Riot Chief Executive Officer Jason Les and Whinstone CEO Chad Harris alerted Governor Greg Abbott’s office that Whinstone, the state’s largest Bitcoin miner, was planning to reduce its power usage ahead of the winter storm.

The Factory Reduces Its Power Consumption For Up To 275 Hours Per Year

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Whinstone began taking preemptive plans to prepare for closing down its mining operations in reaction to potential demand surges in Ercot, Payfer added, referring to the Texas grid operator Electric Reliability Council. The mine consumes enough energy to power around 60,000 houses across the state.

Ercot’s so-called demand response programs, in which industrial users such as Bitcoin miners mutually agree to close down to conserve power, is one technique to try to avoid blackouts during a storm. If Ercot requests it, such users cut their power usage. The programs are not available for free: When miners are ordered to close down or reduce their power usage, the grid operator compensates them. According to Payfer, Whinstone cut the power without Ercot formally requesting it.

The Whinstone mine cut power use or closed down completely for nearly eight days in February 2021, while winter storm Uri caused outages across the state. The factory reduces its power consumption or closes down for up to 275 hours per year.

Bitcoin miners had made involvement in these initiatives a significant talking point in pressuring Abbott to provide incentives for their business, which has flooded Texas due to the state’s inexpensive electricity. The Texas Blockchain Council, a lobbying group for the Bitcoin mining business, also contacted the governor’s office, promising to shut down operations as needed before the freeze this week.

Minnesota-Based Data Center Shut Down Its 11 Megawatt Texas Facility To Save Energy

Computing Northern, a Minnesota-based data center that offers crypto mining services, has announced that it will shut down its 11 megawatt Texas facility to save energy. Within 10 minutes, Compute North could shut down the Texas data center. In an interview, Peter Liska, director of power at Compute North, said, If they are wanted to come down to ensure stability, we are ready, willing, and able to limit the majority of our load if needed.