Bitcoin Hashrate Plunges as Miners Power Down During Harsh US Storm

TLDR

• A powerful winter storm in the United States caused a sharp decline in Bitcoin hashrate over the weekend.
• The Bitcoin network’s computing power dropped by more than 40% within two days.
• Mining companies voluntarily reduced operations to help stabilize the power grid during extreme weather.
• Abundant Mines reported that around 40% of global Bitcoin mining capacity went offline.
• Bitcoin hashrate fell to 663 exahashes per second before rebounding to 854 exahashes per second.

A strong winter storm swept through the United States, causing a sharp drop in Bitcoin hashrate, which fell over 40% within days. Miners scaled back operations to reduce pressure on power grids and respond to energy emergencies triggered by freezing temperatures and power outages.

Mining Operations Impacted as Weather Disruptions Spread

The severe storm system struck more than 35 states, delivering snow, ice, and extreme cold that disrupted power to over one million customers.

In response, Bitcoin mining companies halted or slowed operations to support the strained electrical grid and conserve electricity.

By Sunday, Bitcoin’s hashrate dropped to 663 exahashes per second (EH/s), down from over 1,000 EH/s on Friday.

Oregon-based mining company Abundant Mines confirmed the scale of the disruption and the industry’s reaction to the grid’s needs.

“Approximately 40% of global Bitcoin mining capacity has gone offline in the past 24 hours,” the firm stated on Sunday.

The company credited the flexibility of mining operations for their ability to shut down rapidly during grid stress and restart afterward.

Bitcoin Hashrate Slides Over 40% Before Rebounding

Bitcoin hashrate began falling on Friday and reached its lowest point in seven months over the weekend before starting to recover.

By Monday, the hashrate rebounded to approximately 854 EH/s, showing signs of network stability as power resumed in many areas.

Hashrate Index data indicates the U.S. contributes close to 38% of the total Bitcoin network hashrate globally.

CryptoQuant analyst Julio Moreno reported that Bitcoin output fell at several large U.S.-based mining firms over the weekend.

His analysis noted a measurable decline in daily Bitcoin production linked to operational curtailments caused by the storm.

Data trends aligned with mining firms’ reports of reduced performance during the weather emergency.

Miners Help Stabilize Power Grids During Peak Demand

Energy Information Administration data shows the U.S. hosts at least 137 crypto-mining facilities as of early 2024.

Many of these miners participate in demand response programs that allow them to reduce energy usage during high-demand periods.

Daniel Batten, a Bitcoin ESG researcher, confirmed that miners in Texas worked with the grid to prevent blackouts.

Industry groups argue that miners can support renewable energy systems by using excess power and quickly reducing load as needed.

This structure allows miners to act as adjustable power consumers who support regional energy balance during emergencies.

Recent grid data from Texas confirms that miner shutdowns were coordinated with utility operators during the storm.

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