How Cryptocurrency and Renewables May Benefit Texans
With President Biden planning to release an executive order for cryptocurrencies in February, it may solidify crypto mining in Texas. Currently, there are many ‘miners’ looking to move to Texas for its low energy costs. However, this comes during a time when the Texas grid is under scrutiny for its handling of the February 2021Freeze. As most ‘miners’ are looking for facilities with a high energy consumption capacity, they are also looking for places to house their mining equipment.
It has been reported that President Biden will be releasing a preliminary crypto strategy and has begun tasking federal agencies to report potential risks and opportunities of the currency. There are already businesses accepting Bitcoin as a form of payment with some big names such as Amazon, Starbucks, and Tesla. We anticipate that crypto is going to have the Whitehouse behind it, but right now, there seems to be a lack of large MW locations available for mining operations in Texas, which will make it more difficult for hosts to operate.
Despite the lack of capacity for equipment, there are many benefits to operating bitcoin operations in Texas. For example, after the February Freeze in 2021, miners were able to sell their excess energy during the event at a record profit. It has been said that crypto will help support the grid by instructing bitcoin facilities to shut off during peak load events to redirect their energy back to the grid. The bitcoin miners don’t suffer any financial harm because they are able to sell the committed amount back to the grid.
Additionally, cryptocurrency operations are helping renewable energy get to market faster than ever because the operators want the cheapest energy costs. Therefore, more renewable infrastructure could be built in Texas, which is good for the environment and operator profits.
If you consume large amounts of Electricity/ Natural Gas and need guidance in reducing costs, mitigating risks, and monetizing your equipment, don’t hesitate to contact us.