Texas is leading the United States in Bitcoin mining, accounting for over 28% of the country’s hashing power, according to crypto mining service provider Foundry USA. The latest Hashrate Map reveals that Texas is followed by Georgia with 9.64%, New York with 8.75%, and New Hampshire with 5.33% of the Bitcoin hash rate. This marks a significant increase compared to December 2021 when Texas controlled only 8.43% of the hash rate. The surge in mining activity across several U.S. states reflects the growing interest and participation in Bitcoin mining.
The global hash rate of Bitcoin had reached 400 EH/s by July 2023, nearly doubling from the end of 2021 when it stood at 174 EH/s. However, the data collected for the Hashrate Map was during a period of power curtailment in Texas. During this time, Bitcoin miners reduce their production to help balance the energy supply and demand in the grid. Texas offers incentives to large energy consumers, like Bitcoin miners, to be flexible with their energy use. Despite the power curtailment, Texas remains an attractive location for mining operations due to its affordable electricity prices and favorable regulatory environment.
Texas has emerged as a prominent hub for crypto mining, especially after China’s crackdown on mining activities in 2021. The state’s lower electricity prices, with an average residential rate of $0.14 per kWh compared to the national average of $0.15 per kWh, have contributed to its popularity among crypto miners. In January 2023, Texas also granted Riot Platforms, one of the participating Bitcoin miners in the curtailment program, over $31 million in power credits. The combination of cheap energy and supportive regulations has propelled Texas to the forefront of Bitcoin mining in the United States.