The Hash rate for Bitcoin mining is once again at normal levels. The nation’s energy system was under stress days after freezing conditions across the country caused a brief reduction in hash rate.
Between December 21st and December 24th, as per data from BTC.com, BTC hashrate decreased by around 100 exahash per second (EH/s), or 40%, to 156 EH/s. On December 25th, it was back to averaging 250 EH/s; on December 26th, the hash rate was 241.29 EH/s.
Bitcoin’s hash rate measures how much processing and computing power mining contributes to the network. A “hash” is an alphanumeric code with a defined length that may represent any length of text, including messages and data.
In the days before Christmas, the United States experienced bone-chilling temperatures that left millions without electricity and claimed at least 28 lives.
Texas BTC miners, who make up a sizable amount of the country’s hash rate, voluntarily scaled back their operations to return power to the grid so that locals may continue to heat their homes.
Texas has experienced recent growth in Bitcoin mining due to affordable electricity and kind mining regulations. It is now home to some of the most significant mining operations in the world.
Among them are Core Scientific, Riot Blockchain, Argo, Bitdeer, Compute North, Genesis Digital Assets, and Argo. However, they all just got a $37.4 million bankruptcy loan to keep afloat.
The US accounts for 37.84% of the monthly average hash rate share, per the Cambridge Bitcoin Electricity Consumption Index. The top four states in the US for bitcoin mining are New York, Kentucky, Georgia, and Texas. All of these states had power interruptions as a result of the winter storm.
Even though 30% of BTC’s hash power in the United States went offline due to the bad weather, mainly in Texas, Satoshi Action Fund CEO Dennis Porter stated that the network is still operating flawlessly.
Now imagine if Amazon or Google tried turning off 1/3rd of their data centers. pic.twitter.com/G49iqBZXDL
— Dennis Porter (@Dennis_Porter_) December 25, 2022
Bitcoin Mining Companies Owes $4 billion
The Bitcoin mining analyst recently issued a study report describing the debt loads of public miners and identifying who owes the most money.
The Hashrate Index revealed that they owe more than $4 billion. Due to its overwhelming financial burden, the biggest of them has already declared bankruptcy.
There isn’t much the business can spend its money on besides paying its monthly creditors with such a large debt load. It had accrued such huge quantities of debt all at once that it was unable to avoid filing for bankruptcy.
The research reveals that Core Scientific, the largest publicly traded bitcoin miner by hashrate, has the greatest debt. Its liabilities total $1.3 billion as of September 30th on its financial statement.
The second-largest creditor is Marathon, which has debts totalling $851 million. With $218 million in debt, Greenidge is the third-largest creditor. However, it is undergoing a restructuring process that might result in a considerable reduction in its debt.