The state of Texas has emerged as a significant player in the Bitcoin mining industry, accounting for more than 28% of all Bitcoin hashing power in the United States, according to a recent Hashrate Map by Foundry USA. This represents a significant increase compared to December 2021 when Texas only controlled 8.43% of the country’s hash rate. Other states with notable Bitcoin hash rates include Georgia, New York, and New Hampshire. The increase in Bitcoin mining activity across various states indicates a growing interest and participation in the industry.
Texas has become an attractive destination for crypto mining due to its favorable regulatory environment and relatively lower electricity prices. The state’s average residential electricity tariff is $0.14 per kilowatt-hour (kWh), which is 8.3% lower than the national average of $0.15 per kWh. This cost advantage is particularly beneficial for large consumers like Bitcoin miners. Furthermore, Texas offers incentives and programs like power curtailments, where miners lower their production during peak energy demand periods to balance the grid. The participation of Bitcoin miners in these programs allows them to receive significant power credits, as demonstrated by Riot Platforms, which mined fewer Bitcoin in August but received over $31 million in power credits.
The rise of Bitcoin mining in Texas can be attributed in part to China’s crackdown on crypto mining activities in 2021. With the closure of Chinese mining operations, mining companies began seeking new locations, and Texas proved to be an ideal choice with its cost advantages and supportive regulatory framework. As a result, the state has witnessed a significant increase in its share of Bitcoin hashing power. The latest Hashrate Map reflects Texas’s growing prominence in the Bitcoin mining industry and highlights the state’s potential to further expand its role in the future.