Industrial miners were forced to shut down their mega-farms due to record heat in Texas.
Riot Blockchain Inc. and Argo Blockchain Plc are just a few of the mining giants that have been forced to suspend their operations. Core Scientific Inc. is also among those companies. Lee Bratcher, President of Texas Blockchain Association, stated:
ERCOT has asked Bitcoin mining companies to shut down their equipment in order to conserve power.
ERCOT (Electric Reliability Council of Texas), is a non-profit organization, the Electric Reliability Council of Texas. A record peak of 78.206 megawatts of energy was reached on July 8. This surpasses the July 5 record of 77.460 megawatts.
Lee Bratcher also notes that 1000 megawatts represents only 1% of total electricity consumed by the state.
A significant amount of equipment from Middle Kingdom was moved to Texas after the Chinese government banned mining in China. This is due to the low cost electricity and loyal legislation.
Mining companies must comply with contractual obligations to electricity suppliers and turn off equipment in the event of a shortage.
Mining has been losing profitability by as much as 80% in recent months. This makes it difficult to make a profit in this period. The peak in hashrate was reached in June. Now, the decline is 24%.
The looming global energy crisis could actually lead to a substantial drop in hash rates. A rise in mining bitcoins costs will result in a decrease in miners. Experts say that a decrease in hashrate can cause a further drop in Bitcoin’s price.