The Rise of Bitcoin Mining in Texas
Since China banned Bitcoin mining in 2021, miners have flocked to Texas, drawn by cheap energy, grid incentives, and a shared ethos of freedom.
"Bitcoin is all about freedom," says one miner. "And in my dealings with the utilities and regulators, Texas is all about freedom."
Understanding the "Duck Curve" and Energy Flexibility
To grasp why Texas is ideal for Bitcoin mining, consider the "duck curve"—a graph showing daily energy demand fluctuations:
- Midnight to early morning: Flat demand (tail).
- Late morning: Lower demand (belly).
- Evening: Peak demand (head).
Texas’s ERCOT grid allows dynamic energy pricing, unlike heavily regulated grids elsewhere. This flexibility lets miners:
- Reduce demand during grid shortages.
- Sell excess power for credits.
👉 Why Texas leads in renewable energy for Bitcoin mining
Why Miners Choose Texas
Texas offers three key advantages:
- Business-friendly policies.
- Stable power grid (ERCOT).
- Skilled labor pool.
Companies like Core Scientific and Genesis Digital Assets cite Texas’s alignment with Bitcoin’s values:
"Texas is about freedom and hard work," says Genesis’s Ankit Joshi.
Legislative Wins for Miners
Proposed SB 1751 (April 2023) threatened to cut grid incentives and tax abatements. After industry pushback, the bill died in the House, preserving miners’ economic benefits.
Debunking Myths About Energy Use
Critics argue Bitcoin mining consumes ~2.2 gigawatts (3% of Texas’s peak demand). However:
- Miners adjust operations during peak times, acting like a 2,000-megawatt "battery" for the grid.
- They support renewable energy development in low-demand periods.
Growth and Jobs
Despite slowed expansion, Texas adds ~150 megawatts of mining capacity quarterly, creating:
- 2,000+ W2 jobs.
- 20,000+ contractor roles.
FAQs
Q: Why did Bitcoin miners leave China?
A: China banned mining in 2021, pushing miners to Texas for its energy and regulatory advantages.
Q: How does Bitcoin mining help Texas’s grid?
A: Miners stabilize the grid by reducing demand during peaks and supporting renewable energy projects.
Q: Is Texas’s power grid reliable?
A: Yes—ERCOT’s market-driven pricing and miner flexibility enhance grid resilience.
👉 Explore Bitcoin mining incentives in Texas
Jeff Wilser is a freelance journalist and author covering tech, finance, and culture. His work has appeared in The New York Times, GQ, and TIME.