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Bitcoin Miners Are in Distress

Strains on the power grid and stagnant crypto prices after this year’s drop have miners concerned about what lies ahead for the industry.

The Cormint Data Systems Bitcoin mining facility in Fort Stockton, Texas.

The Cormint Data Systems Bitcoin mining facility in Fort Stockton, Texas.

Photographer: Jordan Vonderhaar/Bloomberg
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In late spring of 2021, China banned all Bitcoin mining as part of a crackdown on crypto in the country.  In response, many Chinese miners packed their bags and headed to Texas. The Lone Star state offered a relaxed approach to regulation, a unique power grid and attractive energy prices — all things that seemed ideal for miners looking for a new home. Until 2022. 

The situation in Texas is complicated, to say the least. The unique energy grid is prone to power outages. Extreme temperatures make keeping expensive mining equipment cool is a challenge. And crypto miners are facing financial difficulties brought on by declining Bitcoin prices.