Texas: the Bitcoin mining capital of the U.S.
Bitcoin mining is energy-intensive and relies on inexpensive energy to make a profit. Bitcoin miners have begun to move to Texas for cryptocurrency for 3 main reasons:
- Less expensive energy
- Inexpensive land
- Supportive legal policies
Access to Less Expensive Energy
One of the main reasons cryptomining companies are going to Texas is to benefit from the cheap, plentiful electricity, which is typically their largest expense. Texas’ deregulated power marker and its growing energy mix from renewables (like wind energy) provide access to less expensive power.
While critics claim Bitcoin mining is excessively energy-intensive, supporters like Governor Greg Abbott, highlight Bitcoin mining’s ability to utilize untapped energy, such as natural gas that would otherwise be flared or vented because of an inability to transport it due to limited infrastructure.
Instead of wasting the energy, cryptocurrency miners can use the surplus gas, and divert it to generators. The generators can convert the gas into electricity and use it to power their sophisticated supercomputers and servers. According to Argus Media, “Companies see a double benefit – reducing the negative impacts of gas flaring and cutting their carbon footprint.”
Crusoe Energy Systems, one of the largest Bitcoin miners in the U.S., has released research that shows that this process reduces CO2 emissions by nearly 63% when compared to flaring. Repurposing otherwise stranded energy and monetize it has been attractive for both energy companies, because it increases their returns on production while also complying with Environmental, Social, and Governance (ESG) initiatives as well as Bitcoin miners.
Snyder’s proximity to oil mining and wind farms make it an ideal location for cryptocurrency companies considering West Texas.
Instead of focusing on bigger cities, cryptocurrency companies have preferred to set up near smaller towns, such as those sparsely populated with ranches and farms, due to the excess energy produced by underutilized circuits. The other benefit of choosing rural land is that it tends to be less expensive.
Texas’ cryptocurrency mining activity makes up as much as 25% of the U.S. total, giving it the highest amount of among all states, according to estimates by Luxor Technologies. The Texas Blockchain council cites at least 27 mining operations in the state, with more on the way.
Chief administrator, Judge Kevin Brendle, has said that he has been fielding inquiries from miners who are interested in tapping into the local grid. “I’m getting calls from Bitcoin miners every time I turn around,” Brendle said.
Snyder has several available industrial sites which could be ideal locations for cryptocurrency companies. At $15,000 per acre, Snyder’s land is inexpensive and ideally located.
Supportive Legal Policies
The Texas Blockchain Council, which was created in 2020, has already helped two bills passed by the State Legislature to make Texas the most convenient state for cryptocurrency and blockchain companies.
Mance Harmon, an experienced technology executive and entrepreneur with more than 20 years of strategic leadership experience, states “Texas has become the epicenter for crypto in terms of leadership, especially on the regulatory side. When we started TBC, we had this vision that if we could influence the regulatory environment in Texas, the rest of the nation would follow. And that strategy is on track. A lot of people have their eyes on Texas because of the work that TBC has been doing.” Harmon continues, “Even in the past two years, there has been a change in the sense that Texas has begun to embrace the crypto community. It’s very pro-crypto at this point.”
Snyder, Texas currently has inexpensive land prices as well as the energy access needed by cryptocurrency and blockchain companies. If you are a cryptocurrency or blockchain company considering expanding or moving to Texas, visit our website to learn more about Snyder.