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The Public
Utility Commission of Texas (PUCT) has adopted new regulations requiring
cryptocurrency mining facilities, including the largest Wall Street Bitcoin
miners, consuming over 75 megawatts of power to register with state authorities.
This marks a significant step in monitoring the industry’s impact on the
state’s power grid.
Texas Mandates
Registration for Large-Scale Crypto Mining Operations
The rule,
which takes effect immediately, mandates virtual currency mining operations to
disclose crucial operational details, including facility locations, ownership
structures, and electricity consumption patterns. Facilities that began
operations before the rule’s effective date must register by February 1, 2025,
while new operations must register within one day of connecting to the grid.
“To ensure
the Electric Reliability Council of Texas (ERCOT) grid is reliable and meets
the electricity needs of all Texans, the PUCT and ERCOT need to know the
location and power needs of virtual currency miners,” commented the Public
Utility Commission of Texas Chairman, Thomas Gleeson.
PUCT Approves Rule Requiring Registration of Virtual Currency Mining Facilities. Read more: https://t.co/aJ5hk424SY #txlege #txenergy pic.twitter.com/2WIbW15nDp
— Public Utility Commission of Texas (@PUCTX) November 21, 2024
The
announcement appears to contradict what Texas Senator Ted Cruz said last week,
as he expressed a desire to turn his region into a cryptocurrency hub. However,
he claims that the U.S. government has different objectives and
“hates” Bitcoin.
“I want
Texas to be the oasis for Bitcoin and cryptocurrency; we are seeing miners and
innovators from all over the world coming to Texas to invest and create new
jobs when it comes to Bitcoin and crypto,” Cruz commented.
I am one of the leading defenders of Bitcoin and cryptocurrency in the U.S. Senate.I want Texas to be an oasis for Bitcoin, and we are seeing many companies come to Texas to create new jobs in the cryptocurrency industry. pic.twitter.com/ayVzxQIIi9
— Ted Cruz (@tedcruz) November 23, 2024
Registration criteria:
- Facilities
must have a total load exceeding 75 megawatts - At least
10% of the facility’s load must be interruptible - Registration
applies to operations at both transmission and distribution voltage levels
Disclosure
requirements:
- Legal
business names and corporate structure - Facility
locations and infrastructure details - Peak load
and power consumption data - Information
about backup generation capabilities
The
commission will maintain an internal database of registrations, sharing
information with the ERCOT for grid management purposes. While the rule
includes provisions for protecting sensitive business information, operators
must renew their registrations annually by March 1.
What Do Wall Street
Bitcoin Miners Say?
Several
publicly traded Bitcoin miners on Wall Street, while not based in Texas,
operate mining facilities or data centers within the state. One such example is
Marathon Digital Holdings (NASDAQ: MARA), the largest Bitcoin miner by market
capitalization. The company recently acquired a 300 MW site in Granbury, Texas.
“MARA is
the new owner and operator of the digital asset data center in Hood County,
Texas. We’re excited at the opportunity we have to play a positive role in the
community,” the company commented.
Riot
Platforms (NASDAQ: RIOT) is also developing a large-scale Bitcoin mining
facility in Corsicana, Texas. In October, the company reported a significant
production increase, mining 505 Bitcoins—a 23% rise from September—and
expanding its deployed hash rate to 29.4 EH/s, driven by enhancements at the Texas
facility. Notably, this production output was the highest since the Bitcoin
halving event in April.
The
Corsicana site is projected to reach a capacity of 1 gigawatt upon completion,
supporting Riot’s long-term growth plans. In October, average power costs per
kilowatt-hour increased slightly to 3.9 cents due to rising energy prices.
Riot’s strategy includes further deployments at Corsicana and upcoming investor
presentations to discuss its expansion
This article was written by Damian Chmiel at www.financemagnates.com.
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