Arctic Blast Forces US Bitcoin Miners to Cut Operations as Power Costs Surge
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The arctic blast sweeping across large parts of the US is beginning to surface as a meaningful operational test for Bitcoin miners, as soaring electricity prices push some operators to curtail or temporarily shut down energy-intensive activity. Network computing power, measured by hash rate, has declined sharply, according to data from Mining Pool Stats, driven largely by reduced output at FoundryUSA and Luxor, two mining pools that primarily serve US-based operators. Both pools experienced hash rate drops of more than 50% over the weekend and remain at relatively low levels as extreme cold continues to strain regional power grids.
The divergence between miners with grid flexibility and those without is becoming more visible. Riot Platforms
RIOT
, whose primary operations are based in Texas, has participated in the state's demand response programs, allowing miners to sell pre-purchased electricity back to the grid when power prices spike. Other operators lacking similar arrangements appear to have been forced to shut down machines as electricity costs surge. Industry participants say the most sophisticated miners are able to adjust operations within seconds, balancing mining revenue against power prices and grid incentives, while miners outside the US could see improved odds of earning block rewards as domestic competition temporarily eases.The disruption arrives as the US has solidified its role as a major global Bitcoin-mining hub following China's crackdown on the industry in 2021, with large operations concentrated in states such as Texas and Georgia. That growth has drawn increasing scrutiny from grid operators and residents concerned about energy shortages and higher electricity bills, pressures that have been amplified by the rapid expansion of artificial intelligence data centers. Over the weekend, the storm left hundreds of thousands of homes and businesses without power across the eastern US, even as large system-level outages were avoided. In equity markets, the operational strain weighed on mining stocks, with Riot shares falling about 6% on Monday and MARA Holdings
MARA
down roughly 5%.