🤠 Bitcoin Mining Saves Texas $18b, Enhances Grid Stability by Replacing Gas Plants

A new report from the Digital Assets Research Institute (DARI) reveals the significant role Bitcoin mining has played in saving Texas up to $18b by offering an efficient alternative to traditional gas peaker plants.

These plants, typically used to meet peak electricity demand, are costly to build, inefficient, and contribute significantly to greenhouse gas emissions, sitting idle for much of the year. In the wake of the 2021 winter storm, which caused widespread blackouts and economic losses, Texas sought alternative solutions to ensure grid reliability.

Bitcoin mining emerged as a key player, with miners participating in demand response programs that enable them to reduce energy consumption rapidly during peak demand. This flexibility has helped avoid the need for a proposed $10b investment in new gas peaker plants by Berkshire Hathaway Energy, thus keeping electricity costs lower for Texans.

The environmental benefits of this approach are also noteworthy. Unlike gas plants that operate intermittently and produce harmful emissions, Bitcoin mining offers a continuous operation model. This allows miners to generate revenue while also providing the ability to adjust energy usage during peak times, helping stabilize the grid.

This flexibility has further enabled the integration of more renewable energy sources, such as wind and solar power, which can be underutilized due to their intermittent nature.

Despite the clear advantages, Bitcoin mining faces some resistance from corporate and political entities, particularly with lobbying efforts from groups like Berkshire Hathaway Energy.

Some lawmakers in Texas have raised questions about Bitcoin mining's role as a grid stabilizer, although studies and reports, including from ERCOT, confirm its positive impact. Proponents, including U.S. Senator Ted Cruz, argue that Texas' abundant and low-cost energy resources make it an ideal environment for Bitcoin mining, driving job creation and economic growth while boosting the state's reputation as a hub for the industry.

⛏️ In The News

• Riot Platforms has launched a formal evaluation of using the remaining 600 MW of power at its Corsicana facility for AI/HPC purposes, halting its Phase II Bitcoin mining expansion to maximize long-term value and shareholder returns.

• Bit Digital secured a $15m annual contract to provide 464 Nvidia B200 GPUs to a key customer in Iceland, replacing a prior agreement, with deployment set for June 2025 and improved margins highlighted by CEO Sam Tabar.

• Petrobras is exploring Bitcoin mining as a potential solution to reduce carbon emissions and integrate blockchain technologies.

• Bitcoin mining pools are facing growing challenges with delays, fluctuating transaction fees, and inefficiencies in BTC payouts, leading to ongoing discussions about innovative solutions to streamline payment processes and address the complexities of compensating miners on time.

• Quantum Blockchain claims its AI-powered "AI Oracle" tool can enhance Bitcoin mining efficiency by 30%, either through energy savings or increased hash rate, but its methodology and results remain unverified and raise skepticism about its practicality and statistical significance.

👁️ IREN Business Update

• IREN announced a $1b facility to expand mining capacity to 57 EH/s by H2 2025, with expected EBITDA of $716m at 50 EH/s and $826m at 57 EH/s at a $100k Bitcoin price.

• The company is implementing direct-to-chip liquid cooling systems in its data centers, starting with Prince George and Childress, to scale cloud and colocation services.

• IREN is progressing the 1,400MW Sweetwater data center, targeting energization in April 2026, while exploring monetization options including Bitcoin mining and AI.

• Focused on land acquisition and grid agreements, IREN is leveraging internal development for future growth, avoiding reliance on M&A.

• Childress' 100MW Phase 6 will complete a 750MW data center by 2025, benefiting from low power costs and high fleet efficiency.