Bitcoin mining farms in Texas are undergoing long durations of outage on account of the ongoing heat wave attack. The US state is no stranger to its tropical weather atmosphere and is facing greater than usual heat attacks. According to meteorologists, the heat streak in lone star state has broken all records this year for the first time in a century.
The media reports have also shared that the outage of Bitcoin mining farms in Texas has impacted hash rate production globally. A Bloomberg article states that the Bitcoin hash rate has declined to the lowest for the first time since the Chinese embargo. It is worth noting that China outlawed all Bitcoin mining farms last year, reducing the BTC hash rate to less than 50%.
It is worth noting that the business community hailing from Texas invited a great many Bitcoin miners who were exiled from China after the ban last year. Many energy supply companies offered great benefits and incentives for the Bitcoin miners to encourage them to set up their new shops in the region. However, at present, Bitcoin mining farms have converted into nothing short of a digitized inferno.
The record-breaking heat wave in Texas is also impacting the mining equipment that is dedicated to performing Bitcoin mining operations only. Under the incinerating temperature levels, the most expensive and rare parts of mining machines, i.e., processing chips, are damaged beyond repair and fast-tracking their depreciation.
Bitcoin Hash Rate Plunges
Bitcoin hash rate production fell by 16% for May, while an additional drop of 5% also hit the Bitcoin mining farms during the peak months of the summer season. Texas has managed to provide power to Bitcoin mining farms with the contribution from ERCOT. Due to the massive power intake of Bitcoin mining farms, the state also experienced load-shedding.
To counter the lapse of electricity, ERCOT managed to inject an additional 1000 megawatts into the main power grid. However, the mining companies in the region sustained electricity surplus and losses, with a conservative fraction of mining operations being able to make up for the losses with revenue generated from providing a power source to the main grid at a higher price.