High temperatures in Texas in June led to record levels of energy consumption and affected local bitcoin miners. Reported by The Block.

On June 9, electricity demand in the state peaked at 75,437 MW, according to the state’s parent agency, ERCOT.

Many Texas-based miners have signed agreements with the provider to cut electricity during peak demand periods.

BitDeer said that although temperatures have been abnormal throughout the week, the company has responded as usual with an increase in energy consumption. When tariffs get too high, the firm restricts operations. BitDeer responds to signals from retail electricity supplier, ERCOT traders and energy consultants.

“We reduced activity in the late afternoon on June 7, and we will continue to do this by monitoring grid usage as well as rising temperatures. We turn off the power using automatic software triggers when electricity costs reach certain price levels,” BitDeer said.

In May, Argo Blockchain slashed bitcoin production by more than 25%, and the company cited weather conditions in Texas as one of the reasons.

“The high temperatures probably cost us about 5 BTC. We have voluntarily cut consumption several times. Energy prices went up and we brought capacity back to the grid,” said Argo CEO Peter Wall.

Earlier, Riot Blockchain announced that it is suspending a possible operation.

“Up to five days of up to 38ºC is forecast this week. […] We will turn off the electricity and the energy we do not use will go to the grid to support several 300,000 households in the nearby community. We know, we prepare and we control everything,” said Chad Harris, commercial director of the company, at the Winestone facility.

In February, bitcoin farms in Texas were shut down due to a severe snowstorm.

In July 2021, the US took the lead in terms of the hash rate of the first cryptocurrency and continues to dominate. Texas accounts for about 11% of the country’s total. CCAF.

Recall that cryptocurrency mining can pose financial risks to American energy supply companies, according to experts from Fitch Ratings.