The US state of Texas accounts for more than 28% of all bitcoin (btc) hash power in the United States, according to the latest Hashrate Map from crypto mining service provider Foundry USA.
The newly updated map shows Texas with 28.5% of all bitcoin hash rate in the country, followed by the states of Georgia with a hash rate of 9.64%, New York with 8.75% and New Hampshire with 5.33%. The bitcoin hash rate represents the speed at which a mining machine operates when attempting to calculate a valid block hash.
A snapshot of the Foundry pool in December 2021 shows a different picture. At the time, Texas controlled 8.43% of the country’s hash rate, while Georgia had 34.17%. Meanwhile, Kentucky stood at 12.40% and New York had 9.53% of the United States hash rate. Compared to 2021, more US states are mining bitcoin this year.
Overall, by July 2023, bitcoin‘s global hash rate had reached 400 EH/s, almost double what it was at the end of 2021, when it was 174 EH/s, Foundry said.
The data was obtained between July 21 and 27, 2023, when Texas faced a power reduction. According to the report, data captured during the restrictions means that Texas’ hash rate may be “higher than reported on the map.”
During power outages, bitcoin miners reduce their production to balance power supply and demand on the network. Basically, it is a way to balance energy consumption during peak hours. In Texas, a program gives incentives to large energy consumers, such as bitcoin miners, for being flexible in their energy use.
One of the bitcoin miners participating in the Texas reduction program is Riot Platforms. In August, the company mined less bitcoin than in July, but received more than $31 million in energy credits from the state.
Texas has been evolving as a hub for cryptocurrency mining thanks to its cheaper energy and welcoming regulatory framework. The state’s electricity prices are below the U.S. average, according to data from the Energy Information Administration.
In January 2023, the average Texas residential electric rate was $0.14 per kilowatt-hour (kWh), a discount of 8.3%. compared to the national average of $0.15 per kWh. The costs are even lower for large consumers such as crypto miners.
The state became a hotbed for large mining operations following China’s crackdown on crypto mining in 2021.
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