Foundry, the US-based crypto mining service provider, has shared a report on the amount of Bitcoin hash rates generated in the region. The report demonstrated that Texas leads other states in developing Bitcoin hash rates.
Per Foundry report, Texas generates approximately 28.5% of the total Bitcoin hash rate produced in the US. The statistic was captured on a “hash rate map” to examine regions with higher hashing capability.
Overview of US Hash Rate Map
According to the report, Georgia, New York, and New Hampshire generated approximately 9.64%, 8.75%, and 5.33% of the Bitcoin hash rate, respectively. The Foundry team noted that the hash rate is critical in crypto mining.
Occasionally, hash rates are used to compute the speed of mining machinery. After revisiting the 2021 Bitcoin hash rate produced in the US, the Foundry team noted that Georgia generated a 34.7% hash rate, leading the other state.
At that time, data indicates that Texas, Kentucky, and New York’s total hash rate translated to 34.17%, 12.40%, and 9.53%, respectively. The Foundry report illustrated that most states in the US have invested heavily in Bitcoin mining in the past few years.
The Foundry team noted a massive difference in Bitcoin mining activities in 2021 and 2023. As of July this year, the Foundry team observed that the global Bitcoin hash rate jumped to 400 EH/s, a significant increase from 174 EH/s generated in 2021.
Factors Contributing to Increase in Bitcoin Hash Rates
The Foundry data was obtained from July 21 to 27 this year when the power curtailment hit Texas. The power curtailment occurred when the renewable energy supply surpassed the electricity demand.
In a press release, the Electricity Reliable Council of Texas (ERCOT) ordered the miners to cease operation due to power supply concerns. The ERCOT argued that the available energy was sufficient for domestic use.
The shifts in power generation patterns in Texas forced the Bitcoin miners to lower production to ensure the energy supply curve meets the demand in the grid. In particular, the power curtailment approach aimed at creating balanced energy consumption in the region.
During the curtailment period, the outputs from crypto mining decreased. In August, Riot Platforms produced less Bitcoin than in July.
Goverment Involvement in Bitcoin Mining
The decline in yields from the crypto mines challenges the authority to provide grants to support the operation of the miners during the energy curtailment session. Among the beneficiaries of the grant program included Riot Platform and other crypto miners.
In an interview with Jason Les, the chief executive of Riot Platforms confirmed to receive $31 million in power credits from the Texas authority. The CEO stated that power credit enables firms to mine Bitcoins cheaply.
Primarily, the grant program aimed at supporting the crypto miners to cope with energy supply challenges. Les stated that Riots has plans to expand to Navarro and Milam counties in the coming days to support the US Bitcoin mining sector.