Texas Cold Snap Hits Bitcoin Mining, Shows Crypto's Weather Weakness

A sudden freeze in Texas led to a significant 34% drop in the Bitcoin hash rate, falling from over 629 exahashes per second (EH/s) on January 11 to approximately 415 EH/s on January 15, with a partial recovery to over 454 EH/s on January 16 as temperatures briefly rose above freezing in Austin. Texas contributes about 29% of the Bitcoin hash rate in the United States, attracting mining firms after China's crackdown on crypto mining. Some companies like Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific have operations in Texas. Although there were fewer power disruptions compared to 2021, mining firms like Marathon Digital and Riot Platforms confirmed they scaled back operations to support the Texas electric grid during the cold weather. This incident underscores the vulnerability of the cryptocurrency mining industry to extreme weather events, and as of January 17, ERCOT reported that grid conditions in Texas were expected to return to normal at midnight local time.