A major trade group announced that bankruptcies of cryptocurrency platforms and concerns about electricity consumption have failed to hinder the growth of the industry in Texas, citing rising energy demand from Bitcoin mining companies. Texas Blockchain Council Chairman Lee Bratcher stated that Bitcoin mining companies consume about 2,100 megawatts of the state's power supply. Bratcher noted that this energy usage increased by 75 percent last year.
He added, "There are some challenges facing the Bitcoin mining industry," mentioning that his group recently witnessed the bankruptcy of two major platforms and that other mining companies are scaling back expansions. The industry is also facing new federal regulations, including a proposed 30 percent tax on electricity used for digital mining, and calls from the U.S. Treasury Secretary and the commodity regulatory body for a regulatory framework.
New York has imposed a ban this year on certain cryptocurrency mining operations that rely on energy generated from fossil fuels, and other states are expected to follow suit. However, in Texas, some counties have offered tax incentives and continue to attract mining companies to utilize wind and solar energy.
