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Texas Crypto Boom Slows as ‘Double Compression’ Hinders Miners

Oct. 3, 2022, 9:06 PM

The growth in Texas crypto-mining capacity will be stunted as Russia’s war on Ukraine drives up global energy prices and Bitcoin prices languish, according to an industry group.

Mining capacity in the Lone Star State will increase by 2 gigawatts to 3.5 GW by the first quarter of 2024, rather than the former forecast of up to 5 GW, said Lee Bratcher, president of the Texas Blockchain Council.

The “double compression effect” of higher electricity prices and declining cryptocurrency values means it’ll take longer to bring online the huge queue of mining projects set to connect to the state grid, ...