Texas Crypto Miners brings down operations, anticipated Winter storm

• Major crypto operations are mostly shutting down as the Winter storm is expected to hit Texas this week.
• Governor Greg Abbott received a letter from BTC mining firms informing him about ERCOT’s needs.
• The once-in-a-decade storm forced power cuts to residents and no electricity for days in the country.

Winter storm Landon is expected to hit some parts of Texas this week, resulting in major crypto mining firms taking down operations as high demands on the state’s power grid are predicted.

What led to the decision:

According to Trystine Payfer, communications director of Riot Blockchain, 99% of power is currently shut off in the company’s data centre in Rockdale. High demands on the grid are anticipated at peak on Thursday night. The country’s governor Greg Abbott received a letter from Bitcoin mining firms represented on the Texas Blockchain Council. They informed him through the letter that they planned to shut down or bring down the operations concerning ERCOT’s needs. ERCOT is the American organisation operating the Texas electricity grid. 

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Reed Clay, Vice President of Texas Blockchain Council, highlighted in the letter to Abbott that they want him to know that they are keeping an eye on the winter storm just like any other seasonal event. And that they are taking measures by shutting down the operations and creating additional capacity with respect to ERCOT’s needs.

According to Payfer, significant Texas-based firms use an estimated1 gigawatt for operations under the normal conditions permissible by the state grid. ERCOT’s website highlights that Texans use 35,016 MW, and the firm states that there is enough power for the present demand. The firm forecast the demand to increase by over 42% in 24 hours, peaking at 49,786 MW when temperatures fall to the lowest that is -8 degrees C in Dallas.

In the previous year, the country experienced days without electricity. A once-in-a-decade winter storm increased the demand on the grid operated by ERCOT, took down many power plants, and froze generators. It even altered with the power supplied to many residents needing heat. And the operation shutdown decision is to avoid this situation again this year.

Texas has been in the news in the cryptocurrency industry, especially in terms of Bitcoin. The Gubernatorial elections recently became a race for the candidates promising to make Bitcoin a legal tender. Don Huffines recently promised in his speech to make BTC a legal tender if he gets elected. Governor Abbott calls himself a crypto law proposal supporter and favours Bitcoin. He seems to encourage mining firms to set up operations in the state. But this winter storm is clearly interrupting the mining operations.