As the Texas energy grid collapses and officials warn of rolling blackouts Bloomberg reported that Bitcoin mining heavyweights have halted operations.
The state is experiencing a heatwave that has caused its power grid to break down and raised conservation concerns. Riot Blockchain Inc. and Argo Blockchain Plc are just a few of the companies that have moved to Texas to benefit from its low energy costs, which is favorable for bitcoin miners. These companies operate millions of computers across Texas to solve complex coding issues, which in turn awards bitcoin miners.
This cutback comes after peak usage Friday when miners reached 78,206 megawatts, breaking the July 5 record of 77.460. As Texas works out its energy crisis, companies could see additional revenue losses as computers are still off-line.
Miners already had to deal with increasing debt. currently has $4 billion in loans. Cryptocurrencies are suffering huge losses this year. Bitcoin, the most popular cryptocurrency, is still far from its record high of $69,000 in November 2021 and is currently trading at just over $20,000. Core Scientific sold 2,000 bitcoins to pay operating costs in June.
The volatility that cryptocurrencies are well-known for has driven rates for bitcoin miners’ loans higher as banks and other institutions flock to support ventures. As they run out cash, crypto firms are feeling the pinch and turning to , including FTX’s Sam Bankman Fried, for a source of financial assistance.