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HomeFinance NewsTexas Emerges as Leading Bitcoin Mining Hub in the US: Foundry's Findings

Texas Emerges as Leading Bitcoin Mining Hub in the US: Foundry’s Findings

Texas has emerged as the top state for Bitcoin mining in the United States, accounting for a massive 28.5% of the nation’s hash rate. This estimate was provided by Foundry, the world’s largest Bitcoin mining pool, based on data collected from its users. The figures reveal a significant increase from 2021 when Texas held an 8.4% share. The state’s rise in dominance can be attributed to government incentives that encourage miners to support the electricity grid. During peak periods, miners are requested to halt operations to prioritize power supply for homes, and they are later compensated for their cooperation. Companies like Riot and Cipher Mining have already taken advantage of these incentives to expand their mining operations in Texas.

The shift in mining activity has caused other states to experience major drops in their hash rate shares. New York, which previously held a 9.5% share, has seen stagnant growth due to restrictions on fossil fuel-powered miners. Georgia’s hash rate share fell from 34.2% to 9.6%, partially due to the non-participation of a large miner from the previous sample. Other states such as Nebraska, North Carolina, Kentucky, Oklahoma, and Washington also experienced declines. To support these findings, the University of Cambridge’s mining map, although not updated since January 2022, shows Texas with an 11.2% share of the US hash rate.

Foundry, in addition to its data collection, has also expanded its mining operations in Texas by acquiring sites from a bankrupt mining firm. However, Foundry suggests that its estimate of Texas’ hash rate share may be conservative due to the data being sourced during a period of curtailment for miners in the region. The University of Cambridge plans to update its mining map by early next year, aiming to ensure a large enough sample size that represents the industry accurately. With the changing landscape of Bitcoin mining globally, Texas’ rising dominance comes as no surprise to industry experts, as conversations with stakeholders have indicated significant shifts away from countries like China and Kazakhstan.

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