Winter storms have hit many states in the US and shut down a lot of businesses. Texas is also experiencing winter woes and many crypto miners are shutting down. This took a load on the already strained power grid.
Texas experienced a breakdown in the power grid in February 2021 and many people were left without power for days. It was a bad period as many people across the state died due to the cold. Riot, a blockchain player, has announced that it shut down its Rockdale operations by 99%. It was a responsible move on the part of the biggest crypto mining operations. Riot Blockchain is a publicly-traded company.
In a statement, the company stated that they decreased their power usage by almost a 100% as the storm progressed. The company is using just under 2% and will maintain this level. The company plans to resume operations when the grid is not under stress anymore. Many more crypto miners followed Riot’s example and shut down operations voluntarily. The arctic blast has brought in uncomfortably cold conditions to a state not used to such temperatures.
The ERCOT or Electric Reliability Council of Texas is in charge of operating the entire state’s grid. Tasked with the job of running smoothly, the current requirement is to maintain a good balance between demand and supply. ERCOT has faced problems in the past with fluctuating prices and spotty service on occasion. ERCOT pays major users to cut power in unusual situations, and this is one of them.
Bitcoin mining requires a lot of energy and this sector and most of its users are cooperating. The goal is to ensure their own safety and that of the citizens of Texas.