Bitcoin mining companies in the state of Texas have suspended the operation of equipment in connection with the upcoming heat season, which will cause an overvoltage in the state’s power grid.
Mining giants such as Riot Blockchain Inc., Argo Blockchain Plc and Core Scientific Inc. are among the companies that have suspended mining. Texas Blockchain Association President Lee Bratcher said:
“Bitcoin mining companies providing over 1,000 megawatts of load have responded to ERCOT’s call by shutting down their equipment to conserve power.”
As a result of this initiative, mining companies will face a drop in profits. The heat is preventing miners from working due to high electricity prices and the added strain on the state’s power grid.
All this is happening against the backdrop of a falling market, when cryptocurrency mining companies are trying to pay off debts and raise additional capital. As a result, the shares of mining companies fell by 75%.
According to the Electricity Reliability Council of Texas (ERCOT), a record peak of 78,206 megawatts was set on July 8, beating the previous record of 77,460 megawatts on July 5.
According to contractual obligations with electricity suppliers, mining companies are required to turn off the equipment in case the region is faced with a shortage of energy.
“Right now, 100% of the machines located in Texas are offline to maintain network support. In difficult situations, including the heatwaves in Texas, we have reduced our electricity consumption and will continue to do so as needed,” said Mike Levitt, CEO of mining company Core Scientific.
In 2021, ERCOT claimed that the state’s power grid was ready to increase the electricity consumption of mining centers to 5,000 MW.
Source: Bits
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