Bitcoin miners face shutdown crisis! An 1800-mile ice storm hits the US, potentially crippling 38% of global hash rate

AccuWeather warns of an ice storm sweeping across 1,800 miles of the southern United States, affecting 60 million people. The US controls 38% of the global Bitcoin hash rate, with 137 mining farms in Texas and other areas facing power outages. Bitcoin miners may reenact the voluntary shutdowns of 2022 to reduce grid load, saving Texas $18 billion in grid costs.

1800-Mile Ice Storm Threatens US, 38% of Bitcoin Hash Rate

(Source: Accu Weather)

A winter storm is expected to hit most of the southern US this weekend, bringing hail and snowstorms, which could cause Bitcoin miners to halt operations until the storm passes. AccuWeather reported on Thursday that a “massive winter storm” could extend from western Texas to the Mid-Atlantic coast, spanning 1,800 miles, causing power outages, transportation disruptions, and affecting up to 60 million people.

The storm’s 1,800-mile range nearly covers the entire southern US. From western Texas to the Atlantic coast, it includes Texas, Louisiana, Mississippi, Alabama, Georgia, North and South Carolina. These regions host a large number of Bitcoin mining facilities. According to the US Energy Information Administration in 2024, the US has over 137 cryptocurrency mining operations, with Texas, Georgia, and New York being the most concentrated.

The US holds most of the world’s mining hash rate. Hashrate Index estimates that the US controls nearly 38% of global hash power. Major US mining companies include Marathon Digital Holdings and Riot Platforms. This high concentration means the ice storm in the southern US could significantly impact the security and block times of the global Bitcoin network.

Miners are the backbone of the Bitcoin network. They verify all Bitcoin transactions and record them into new blocks. The more miners participate, the higher the total hash rate, helping to secure the network. If 38% of the US hash rate goes offline due to the storm, the overall network hash rate will drop sharply, potentially extending block times from an average of 10 minutes to 15 minutes or longer until difficulty adjusts. While this does not threaten network security (which requires over 51% hash power to attack), it can slow transaction confirmation speeds and affect user experience.

Potential Impact of the US Southern Ice Storm on the Bitcoin Network

Hashrate Impact: 38% of global hash power may be temporarily offline

Geographical Scope: 1,800 miles across multiple states

Affected Population: Up to 60 million people

Key Facilities: Over 137 farms in Texas, Georgia, and other areas face power outage risks

Lessons from the 2022 Texas Blizzard

Historically, when major storms severely damage the power grid, Bitcoin miners have paused mining to reduce load. In 2022, during a severe winter storm in Texas, all crypto miners voluntarily reduced mining activity. Daniel Batten, a Bitcoin environmental, social, and governance researcher, told Cointelegraph that miners are likely to do the same again.

The 2022 Texas blizzard was an extreme stress test. Sudden temperature drops increased heating demand, while natural gas pipelines froze, causing power plants to shut down, nearly collapsing the Texas grid. In this crisis, Bitcoin miners voluntarily shut down en masse, reallocating electricity to residents. This behavior not only prevented a total grid failure but also gained social acceptance for Bitcoin mining.

This experience established trust and coordination mechanisms between miners and grid operators. ERCOT, Texas’s grid operator, began including large mining farms in demand response programs, allowing quick load reductions or shutdowns during grid stress. This flexibility is a unique advantage of Bitcoin miners compared to traditional industrial power consumers: aluminum and steel plants cannot easily shut down, but mining farms can stop operations within minutes without damaging equipment.

Batten added, “I believe that as extreme weather events become more frequent worldwide, the demand for load balancing in Bitcoin mining—especially as more solar and wind power are integrated into the grid—will only increase.” This highlights the role of Bitcoin miners in energy transition. The intermittent nature of renewables (solar only generates during the day, wind depends on wind conditions) makes grid balancing more difficult. Bitcoin mining, as a flexible load, can turn on during renewable surpluses to absorb excess electricity and turn off during grid stress to release capacity. This capability will become increasingly important as the share of clean energy rises.

Bitcoin Miners Save Texas $18 Billion in Grid Costs

A report released Tuesday by the Digital Asset Research Institute shows that Bitcoin mining saved Texas about $18 billion by eliminating the need for new natural gas peaking plants. This staggering figure reveals the critical role Bitcoin miners play in the electricity economy.

Traditional grids face an economic dilemma: capacity must be built to meet peak demand, but most of that capacity remains idle most of the time. During Texas’s summer peaks, large amounts of electricity are needed for air conditioning, but in other seasons, that capacity is wasted. Building peaking plants (usually natural gas plants that can start quickly to meet demand spikes) is costly and often economically inefficient due to underutilization.

Bitcoin miners offer a more economical alternative. They can consume large amounts of electricity during off-peak times when power is cheap, providing a stable base load for the grid. This allows renewable and nuclear power plants, which lack flexible operation, to run continuously. During peak demand, miners shut down, releasing capacity and avoiding the need for expensive peaking plants. This flexibility saves grid operators huge infrastructure costs.

How was the $18 billion savings calculated? The report likely assumes that Texas’s flexible load from Bitcoin miners avoided the construction of several natural gas peaking plants. If each plant costs $1-2 billion, avoiding 10-15 plants could save $10-30 billion. Considering additional benefits like absorbing excess renewable energy and stabilizing grid frequency, the $18 billion estimate is plausible.

Three Major Contributions of Bitcoin Miners to Texas Grid

Cost Savings: Eliminated the need for peaking plants, saving about $18 billion

Curtailment of Excess Power: Absorbed surplus renewable energy, improving energy efficiency

Demand Response: Rapidly shut down during grid stress to prevent large-scale outages

Standard Response Procedures for Mining Companies like Bitdeer

Singapore-based mining company Bitdeer operates over 293,000 mining rigs, including facilities in Texas and other US regions. The company told Cointelegraph that it expects the storm to have minimal impact on its operations. A spokesperson said, “Storms usually don’t directly affect our operations. We have standard procedures for seasonal maintenance, such as winterizing pipelines. Our on-site teams monitor weather closely and can respond quickly.”

This preparedness shows that professional mining companies have institutionalized extreme weather responses. Winter maintenance includes reinforcing structures, preventing pipe freezing, ensuring backup power systems are operational, and stockpiling repair supplies. 24/7 monitoring ensures rapid response to disasters, minimizing losses.

The spokesperson added that ERCOT considers Bitcoin miners as “large flexible loads,” meaning they can reduce consumption upon request, unlike fixed industrial users. “If there is a power shortage, Bitdeer is ready to support the grid at any time.”

The classification as “large flexible loads” is key to policy support for miners. It allows farms to benefit from lower interruptible electricity prices (typically 20-40% cheaper than industrial rates) in exchange for being available to reduce load or shut down when the grid needs it. This mutually beneficial arrangement makes Bitcoin mining a grid-friendly industry rather than a power waster.

Bitcoin miners can help stabilize the grid through load balancing, providing rapid, controllable demand response. Mining rigs are often located near wind or solar farms, increasing output during excess renewable generation and shutting down during grid stress. This bidirectional regulation capability is unmatched by traditional industrial loads.