Despite Heat Wave, Bitcoin Miners Turn on Rigs As BTC Price Jumps

Bhushan Akolkar
August 5, 2022
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The recent price surge by Bitcoin over the last two weeks has forced BTC miners to turn on their rigs despite the ongoing heat wave in the west.

Amid the Bitcoin price crossing $23,000, the BTC mining difficulty rate has jumped more than 1.7% in the last two weeks. During the previous bi-weekly adjustment, the Bitcoin mining rate dropped to its lowest a year ago.

Amid the current heat wave, electricity costs have gone up significantly which is also the biggest expense for Bitcoin miners. With soaring electricity prices due to heat waves, Bitcoin miners shuttered operations.

Over the last two weeks, the BTC price has surged by 6.2%. This price jump has boosted mining revenue and forced miners to turn on their rigs. Speaking to Bloomberg, Jaran Mellerud, crypto-mining analyst at research firm Arcane Crypto said:

“The Bitcoin price increase has led to increased profitability for miners and some miners who were pushed offline in June and July have likely plugged in their machines again”.

Bitcoin Miners Concentrating in Texas and Georgia

Once again, Bitcoin miners have been flocking to the southern U.S. states of Georgia and Texas which have crypto-friendly regulations and low price electricity supply. Last month in early July, miners had to shut down all industrial-scale operations after a strong heat wave hit Texas.

Some of the large-scale miners in Texas have participated in demand response programs by the state operator – Electric Reliability Council. This program involves a voluntary curtailing of energy consumption during peak hours, however, miners get compensated later.

By shutting down its Bitcoin mining rigs in Texas last month, Riot Blockchain has accumulated $9.5 million in credits last month. Jaran Mellerud said:

“In July, many American miners unplugged their machines as part of their participation in demand response programs. This led to a considerable drop in Bitcoin’s computing power in that month”.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.