• Texas paid a crypto mining company $175,000 per hour to shut its machines off due to winter storms.
• The money was given so the power grid wouldn’t be put in trouble.
• Crypto mining has garnered a negative reputation amongst eco-friendly individuals and some believe it should be outlawed.

Texas Pays Crypto Mining Firm for Shutdown

In early 2021, the state of Texas paid a bitcoin mining company called Bit Deer approximately $175,000 per hour to shut off its machines due to devastating winter storms. The money was given so the power grid wouldn’t be put in trouble as many people were using their heaters all day and night, leading to serious issues with the state’s power sources.

Mining Companies Moving to Texas

Over the past several years, Texas has become home to a wide array of crypto mining companies, many of which hail from China given their home country ended bitcoin mining in the summer of 2021 and dubbed the practice illegal. These companies are making their way to rural parts of the south due to open spaces and low-cost energy but this has led to some unexpected barricades as power is limited and at times more expensive for common people.

Winter Storms Impact on Power Grid

February of 2021 saw Texas suffering from winter storms Uri and Viola which led to several blackouts and freezing temperatures for residents. Mining computers and other machinery used by companies like Bit Deer were allegedly utilizing as much electricity as was required to power 6,500 homes. The state paid out over a four-day period when no activity happened meaning Bit Deer made $18 million during that time frame without doing any work.

Negative Reputation Around Mining Practices

Crypto mining has garnered something of a negative reputation over the years amongst eco-friendly individuals who say it should be outlawed fully given it is allegedly leading Mother Earth towards a dismal path that there’s no return from.

Conclusion

Texas had no choice but pay Bit Deer an exorbitant amount of money for shutting down its machines during winter storms in order preserve what little energy remained on its grid while avoiding any further damage or deaths from occurring as a result of low temperatures or lack thereof electricity being provided throughout its rural areas.