Texas Bitcoin Miners Face Scrutiny from Lawmakers

Texas-based Bitcoin miners have come under fire from a group of Democratic lawmakers led by Massachusetts Senator Elizabeth Warren.

The lawmakers are seeking information from the Electric Reliability Council of Texas, an organization that operates the Lone Star State's electrical grid, about the amount of electricity consumed by the mining sector over the last six years.

Just seven companies consume enough electricity to power an entire city with 830,000 residences, according to data provided in the lawmakers' letter.

Describing Texas as "an unregulated safe harbor," the lawmakers claim that the influx of mining businesses poses a threat to the state's energy market by straining the electricity grid.

The letter argues that Texas taxpayers should not subsidize the profits of mining companies.

Warren adds that the subsidies that are being provided to Bitcoin miners will also exacerbate the climate crisis.

Republican lawmakers from Texas have welcomed cryptocurrency miners with open arms despite concerns about the instability of the state's electricity grid. Texas Governor Greg Abbott and Senator Ted Cruz have vowed to turn the state into the Bitcoin capital of the world.

In July, industrial-scale miners were forced to shut down their operations in order to avoid roiling blackouts.

Local mining farms went offline during a massive winter storm that took place in February 2021. Mining farms in some other states were also negatively affected by extreme weather back then.