The Magazine for Asian Investors
Almost all Bitcoin mining companies in Texas have shut down their computers due to fears that the heat wave could cause power outages on the state’s grid.
These bitcoin mining companies include Riot Blockchain, Argo Blockchain, and Core Scientific.
These companies have located in the state of Texas due to low energy costs and liberalization laws for mining cryptocurrencies. As a result, Texas has become one of the largest crypto mining centers in the world.
The president of the Texas Blockchain Business Association shared that the Electricity Council of Texas (ERCOT) will require these businesses to temporarily shut down their computers to conserve energy if bitcoin mining power consumption exceeds 1,000 megawatts.
It is expected that the profitability of Bitcoin mining companies will decrease due to the heat wave, as these companies will have to shut down their computers due to rising energy prices.
Bitcoin mining companies are also struggling to pay their debts and raise funds. The bitcoin price has fallen sharply and the share price of bitcoin mining companies has dropped by about 75% this year.