The US state of Texas accounts for more than 28% of all Bitcoin (BTC) hash power in the United States, according to the latest Hash Rate Map from cryptocurrency mining service provider Foundry USA.
The newly updated map shows Texas with 28.5% of all Bitcoin hash rates in the country, followed by the states of Georgia claiming a 9.64% hash rate, New York with 8.75%, and New Hampshire with 5.33%. The Bitcoin hash rate represents the speed at which a mining machine runs in an attempt to calculate the hash of a valid block.
A snapshot of the Foundry pool in December 2021 shows a different picture. At that moment, Texas controls 8.43% of the country’s hash rate, Georgia has 34.17%. Meanwhile, Kentucky has 12.40% and New York 9.53% of the hash rate in the United States. Compared to 2021, more US states are mining Bitcoin this year.
In general, in July 2023, the global hash rate of Bitcoin reached 400 EH/s, almost double what it was at the end of 2021, when it stood at 174 EH/s, Foundry said.
The data was taken between July 21 and 27, 2023, when Texas faced a power shortage. According to the report, data obtained during the bans means that the hash rate in Texas may be “higher than what appears on the map.”
During power outages, Bitcoin miners reduce their production to balance the network’s energy supply and demand. Actually, This is a way to balance energy consumption during peak hours. In Texas, a program gives large energy consumers, such as Bitcoin miners, incentives for flexibility in their energy use.
One of the Bitcoin miners participating in the Texas reduction program is Riot Platforms. In August, the company mined less Bitcoin than in July, but received more than $31 million in energy credits from the state.
Texas has become a center for cryptocurrency mining thanks to cheaper energy and a favorable regulatory framework. Electricity prices in the state are below the US average, according to data from the Energy Information Administration.
As of January 2023, the average Texas residential electricity rate is $0.14 per kilowatt-hour (kWh), an 8.3% discount compared to the national average of $0.15 per kWh. Costs are even lower for large consumers, such as cryptocurrency miners.
The state has become a hotspot for large-scale mining operations following China’s explosion of cryptocurrency mining in 2021.