Bitcoin miners in Texas have been powering down amid heatwave and record electricity demand

Quick Take

  • Due to high temperatures in Texas this week, energy demand set a new record high for the month of June.
  • For some Bitcoin mining companies, this means more off time as the state’s grid operator signals peak times prices go up.

High temperatures in Texas this week have led to record-breaking power use levels for the month of June, presenting a test for state's power grid. And the heatwave has had implications for some of Texas's bitcoin mining operations.

Energy demand hit a peak of 72,386 megawatts on Monday, setting a record for June — only to be surpassed the following day, when demand hit 72,785 megawatts, according to data from the Electric Reliability Council of Texas (ERCOT). The all-time record was 70,257 MW on June 23, 2021.

An influx of Bitcoin miners into the state has raised questions about the potential consequences for its grid. "ERCOT expects sufficient generation to meet forecasted demand," ERCOT told The Block via email Thursday.

Many Bitcoin miners in the state have set agreements with ERCOT to power down at peak energy demand times. Advocates say this kind of flexibility can be an asset to the grid.

Bitdeer said that while this week's record-breaking temperatures were unusual, the company would respond as it normally does when demand goes up. The company curbs power during times of peak demand on the grid and when electricity prices get too high. It responds to signals from its retail electric provider, ERCOT traders, and power consultants.

"We curtailed operations on June 7 during the late afternoon and will continue to do so when monitoring usage on the grid as well as rising temperatures," a Bitdeer spokesperson said via email. "We power down by using automated software triggers when power costs reach certain price points," they added.

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