The latest data from crypto mining service provider Foundry USA reveals that Texas accounts for more than 28% of all Bitcoin (BTC) hashing power in the United States. This makes Texas the state with the highest concentration of Bitcoin mining activity in the country. The data, presented in Foundry’s updated Hashrate Map, shows that Texas holds 28.5% of the country’s Bitcoin hash rate. This is followed by Georgia with 9.64%, New York with 8.75%, and New Hampshire with 5.33%.
Comparing the current figures with a snapshot from December 2021, it is evident that more U.S. states are now mining Bitcoin in 2023. In December 2021, Texas had only 8.43% of the country’s hash rate, while Georgia dominated with 34.17%. Kentucky stood at 12.40%, and New York held 9.53%. Therefore, the shift in hash rate distribution indicates a significant increase in Bitcoin mining activity across various states in the U.S. in the span of just two years.
According to Foundry, the global hash rate of Bitcoin reached 400 exahashes per second (EH/s) by July 2023. This is nearly twice the hash rate recorded at the end of 2021, which stood at 174 EH/s. The exponential growth in hash rate demonstrates the expanding scale and efficiency of the Bitcoin mining network.
The data used for this analysis was collected between July 21–27, 2023, during a period when Texas experienced power curtailment. It is important to note that the captured data may underestimate the actual hash rate of Texas due to the curtailment. Power curtailment measures are implemented by Bitcoin miners to adjust their production and balance energy supply and demand in the grid. During peak times, miners lower their energy consumption to avoid straining the power infrastructure. In Texas, a program provides incentives to large energy consumers, including Bitcoin miners, for their flexibility in energy usage.
One prominent player engaged in Texas’ curtailment program is Riot Platforms, a leading Bitcoin miner. Despite mining fewer Bitcoins in August compared to July, Riot Platforms received over $31 million worth of power credits from the state. This demonstrates the economic benefits that miners can derive from participating in Texas’ energy management initiatives.
Texas has emerged as a favorable destination for crypto mining due to its affordable energy costs and supportive regulatory framework. Electricity prices in Texas, as per data from the Energy Information Administration, are below the national average. In January 2023, the average residential electricity tariff in Texas was $0.14 per kilowatt-hour (kWh), which represented an 8.3% discount compared to the national average of $0.15 per kWh. For larger consumers like crypto miners, the costs are even lower, making Texas an attractive location for mining operations.
The rise of Texas as a mining hub can be attributed to China’s crackdown on crypto mining in 2021, which displaced numerous mining operations. Texas, with its abundant and relatively inexpensive energy resources, has successfully attracted many displaced miners, further solidifying its position as a key player in the Bitcoin mining industry.
In conclusion, Texas currently leads the United States in Bitcoin hashing power, accounting for over 28% of the country’s total hash rate. The state’s rise as a prominent mining hub can be attributed to factors such as affordable energy costs and favorable regulatory conditions. The significant increase in Bitcoin mining activity across various U.S. states highlights the growing prominence of the industry. As the global hash rate continues to expand, it signifies the increasing efficiency and scalability of the Bitcoin mining network.