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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