The US state of Texas has come up with a new regulation to maintain its power grid. The Public Utility Commission of Texas (PUCT) has proposed that large Bitcoin and crypto mining facilities in the ERCOT region make a registration with the state.
The mining firms will have to disclose major information, including their electricity usage. The rule has come at a critical time when Bitcoin mining profitability has taken a hit in 2024.
Texas proposes registration for crypto miners
The PUCT has proposed the registration of virtual currency mining facilities with the Commission. The rule will reportedly apply to large crypto-mining facilities in the ERCOT region.
According to the filing, facilities will have to provide information about their location, ownership, business type, and electricity requirements. The overall goal seems to be to collect the necessary information to manage the electric grid. As per the New York Times, 10 out of the 34 crypto mines pull electricity from the state’s power grid, immensely increasing demand.
NEW: The Public Utility Commission of Texas is introducing regulations requiring large Bitcoin mining facilities in the ERCOT region to register, providing detailed information about their operations to improve grid reliability. pic.twitter.com/wntJApSFgA
— Pierre Rochard (@BitcoinPierre) August 27, 2024
The filing has given until October 14, 2024, for public opinions. The proposal imposes potential penalties for violations or failure to register.
Bitcoin miners struggle with profitability
The proposal comes at a time when Bitcoin miners are struggling with profitability after the April halving. Over the last three years, BTC mining profitability has seen a decline. In 2021, Bitinfocharts show that Bitcoin mining profitability was relatively high above 0.4 USD per day for 1 THash/s. However, it started to decline towards the end of the year until 2024. The year started at a low of 0.09 USD. In August, the figure is around 0.05 USD after the Bitcoin mining reward was slashed.
Recently, Bitcoin miner Rhodium Enterprise filed for Chapter 11 bankruptcy, along with six of its subsidiary companies due to reduced profits. Cryptopolitan previously reported that the company’s debts range from $50 million to $100 million.
VanEck’s Matthew Sigel and Nathan Frankovitz previously explained that Bitcoin miners are moving part of operations toward AI and high-performance computing (HPC) for alternate revenue streams. They estimated that converting 20% of their capacity to these areas by 2027 will create a net present value of $37.6 billion.
