Bitcoin mining farms in Texas have gone offline because of a massive winter storm that drained the state’s power grid.
While some mining farms have stopped operations due to power outages, others are selling electricity back to the grid at a premium, said Ethan Vera, co-founder of Luxor Tech, which is a U.S.-based crypto mining company. Most mining farms are offline, Vera said.
Due to the Texas outage, hashrate generated from Luxor’s mining pool has decreased by 40%. The majority of hashrate for the entire mining pool comes from the U.S. mining farms, Vera said.
While it is not clear what exact percentage of hashrate in the global mining pool is from Texas-based facilities, some of the largest bitcoin mining companies, such as Bitmain and Layer 1, have operations in Texas because of the state’s cheap electricity.
Crypto mining giant Bitmain built one of the world’s largest bitcoin mines in Rockdale,