Bitcoin mining companies operating in Texas are being forced to register and share key details about their facilities.
The Public Utilities Commission of Texas (PUCT) passed a rule on Thursday stating that Bitcoin miners using the grid maintained by the Energy Reliability Council of Texas (ERCOT) need to share the location, ownership information and demand for electricity of their facilities with the state agency.
Miners must register within one working day after their facility connects to the ERCOT grid and renew annually by March 1. ERCOT, an independent system operator, manages 90 per cent of Texas’ electric load. PUCT Chairman Thomas Gleeson explained that the new rule aims to improve power grid management as more mining facilities begin operations.
“To ensure the ERCOT grid is reliable and meets the electricity needs of all Texans, the PUCT and ERCOT need to know the location and power needs of virtual currency miners,” Gleeson said.
After China cracked down on crypto mining in 2021, miners relocated to other jurisdictions, with many moving to Texas to continue operations. Bitcoin miners who fail to register under the PUCT rule will incur a Class A violation, leading to fines of up to $25,000 per day.
Texas Senator Ted Cruz has promised to transform his state into an “oasis” for Bitcoin and cryptocurrency. In a Nov. 21 interview with Fox Business, Cruz identified the federal government as the greatest threat to Bitcoin, accusing certain politicians of openly opposing digital assets. He argued that the federal government hates Bitcoin because it is decentralized and beyond their control.
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Crypto mining has increased electricity demand in Texas
This incoming law is actually a change that Texas lawmakers mandated in 2023 bill requiring crypto mining facilities consuming over 75 megawatts of power to disclose their location, ownership, and electricity demand to the utility and ERCOT.
Crypto mining has significantly increased electricity demand across Texas due to its high energy consumption for running and cooling computers. This rule enables the state to monitor electricity usage by crypto facilities and safeguard the grid’s reliability.
During the Nov. 21 North American Blockchain Summit, the Satoshi Action Fund (SAF) reported that Texan lawmakers are beginning preliminary discussions on Strategic Bitcoin reserve legislation.
Cruz attributed the current market boom to people’s optimism about a more favorable regulatory environment under President-elect Donald Trump, following years of strict enforcement by the previous administration.
Several major Bitcoin mining companies have established operations in Texas, taking advantage of the state’s deregulated energy market and integration with the ERCOT grid.
Riot Platforms (NASDAQ: RIOT), based in Rockdale, operates one of the largest mining facilities in the U.S. The company plays an active role in ERCOT’s energy conservation programs, receiving compensation for reducing energy usage during periods of high demand.
Nearby, Bitdeer Technologies (NASDAQ: BTDR) also runs large-scale mining operations and participates in similar grid stabilization efforts, reflecting the industry’s alignment with Texas’ energy management strategies.
Meanwhile, Marathon Digital Holdings (NASDAQ: MARA), another prominent miner in the state, focuses on renewable energy integration. By utilizing ERCOT’s unique energy mix and flexible load capabilities, Marathon supports the grid while advancing its sustainability goals. These companies exemplify the synergy between Texas’ energy infrastructure and the growing cryptocurrency mining industry.
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