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- 1 Texas is currently the ‘crypto mining capital’ of the US.
- 2 Around 27 crypto-mining operations are active in the State.
Riot Platforms, currently the biggest crypto-miner in Texas, saw a lot of activity developed throughout the Texas Week of Action. Activists came together to raise their voices against the company’s future Bitcoin (BTC) mine to be developed in Navarro County. According to a press release, they suggested Bitcoin miners not to “mess with Texas’ water and electricity.”
Texas Already a Leading Carbon Emitter
Founder of the non-profit organization Texas Coalition Against Cryptomining (TCAC), Jackie Sawicky, said, “Bitcoin proof-of-waste ‘miners’ are wasting water, driving up our electricity bills, getting tax breaks, abatements, and deeply discounted energy. They get paid to shut down once the grid has destabilized, then they resell that cheap energy at a premium.”
TCAC members protested at the location in Navarro County where Riot is reportedly developing the Bitcoin mine. They intend to better inform Navarro County denizens about the potential impact of the development on the region. The crypto mine of such a large proportion would require an abundant water supply to cool its computer processing systems.
According to research by Greenpeace, an independent global campaigning network, Bitcoin mining facilities worth 2,234 MW have been built since BTC’s inception. Riot Platforms’ latest crypto mine is expected to consume 1 GW of energy annually. Texans speculate that it could add to the State’s carbon emissions.
The latest data available shows The Lone Star State remains the top carbon emitter in the United States with 623 Million metric tons produced in 2021, accounting for 13.5 percent of the nation’s carbon footprint during the year. Transportation, industry, and electricity generation primarily make up the greenhouse gas (GHG) dome in Texas.
Bitcoin mining will put more strain on an “already stressed and unstable grid,” activists believe. However, the Texas energy grid “has held up remarkably well,” as Texas Tribune energy reporter, Emily Foxhall, told CBS News. Renewable energy sources have kept it stable throughout the sweltering summers this year.
A recent study by the United Nations University revealed Bitcoin mining’s land and water footprint. While the operations are taking up land equivalent to 1.4 times the area of Los Angeles, Bitcoin’s water consumption is identical to the resource’s availability to 300 Million Sub-Saharan Africans.
In 2022, Bitcoin mining consumed around 50 Billion kilowatts (KW) per hour as per a White House report. A BTC transaction allegedly takes up almost 1,500 kWh to complete, sufficient to power an average US household for 50 days. Furthermore, the flagship cryptocurrency’s energy consumption reached over 700 kWh, nearly 5 times of Visa’s.
Texas’ crypto mining share in the US has increased from 8.43 percent to 28.5 percent between 2021 and 2023. Additionally, a demand response program offered by the Electricity Reliability Council of Texas (ERCOT), the State’s grid operator, is attracting more crypto miners to the region. Miners can generate profit by curtailing their energy consumption and selling excess electricity to the organization.
In September, Riot Platforms raked in $31 Million by selling its electrical load to ERCOT. The revenue equaled 1,136 Bitcoins according to its price when the news broke.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
