Record heatwaves are being recorded around the world as extreme weather worsens due to climate change. States across America continuation to see temperatures rise above 100 degrees Fahrenheit (38 degrees Celsius), while the United Kingdom recently achieve 104 degrees Fahrenheit (40 degrees Celsius).

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While a hot climate may be unusual for many of these regions, Texas — a state infamous for its hot summers — has warmer temperatures than usual. Electricity Reliability Council of Texas (ERCOT) recently declared that the demand for electricity in Texas is constantly breaking records this month.

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Unsurprisingly, the constant heat in Texas is having a major impact on cryptocurrency miners located throughout the Lone Star State. As Cryptooshala recently reported, a number of miners in Texas were forced to shut down entirely earlier this month to cope with the strain on the Texas power grid.

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Lee Bratcher, president of the Texas Blockchain Council, told Cryptooshala that there are currently about 10 industrial crypto miners and 20 small-scale miners in the region.

Earlier this month, ERCOT asked businesses and residents to volunteer to save energy during a heat wave in Texas. A Riot Blockchain spokesperson told Cryptooshala that his Whinstone facility in Rockdale has now closed. participation in ERCOT’s “Four Coincident Peaks” program, noting that the facility will cut all power to help stabilize the grid during peak demand hours. “As part of Riot’s participation in the program in June, the company reduced its energy consumption by a total of 8,648 megawatt-hours,” a spokesperson said.

Peter Wall, CEO of Argo Blockchain, a cryptocurrency mining company that recently opened a data center in West Texas, also told Cryptooshala that the company is cutting back on mining operations when ERCOT sends a retention alert. On July 19, 2022, he said that Agro should go through this along with many other mining businesses in the area.

As a result, Bitcoin (BTC) miners have experienced the biggest drop in computing power ever. strength July 21, 2022 as China banned cryptocurrency mining in May 2021. This came as a surprise to industry experts who were expecting bitcoin hash rate difficulty to increase based on current trends. Frank Holmes, CEO of Hive Blockchain Technology, a publicly traded cryptocurrency mining company operating in Canada and Europe, told Cryptooshala that Bitcoin’s hash difficulty should have grown by 3% every month based on financial models, but that’s not the case. case for a number of reasons. He said:

“As the price of bitcoin dropped, many S9 mining machines went down or the electricity spiked and the miners had to stop working. But more importantly, many of the machines that should have been connected are now unusable, which has also reduced the complexity.”

Holmes noted that the drop in Bitcoin computing power was beneficial for Hive because their facilities were not affected by climate change or other factors. He added that every month new machines for mining are delivered to Hive, and the slots are filled with growth. However, Holmes shared that Hive continues to look for locations to open its next mining operation in Texas, which will be the company’s first in the US.

Despite the extreme weather conditions in Texas for miners, Holmes explained that the Hive method, which uses 100% green energy to mine bitcoin and ether (ETH), will not disrupt the state’s power grid. Holmes specified that Hive’s future facility in Texas will operate as a solar wind farm that will not be subject to ERCOT regulations. “There are several places in Texas that have the infrastructure to do this. There are also loans to ensure that we build a solar farm.”

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While Holmes is confident that Hive will soon operate in Texas, he explained that the company has big ambitions for the facility, noting that it will require 300 megawatts of electricity. With that in mind, Holmes explained that Hive is cautious about deploying too quickly in Texas, noting that large-scale mining is risky when it comes to on-time delivery. “We don’t want to scare the public or disappoint our shareholders,” he said.

Isaac Holyoak, director of communications for CleanSpark — a sustainable bitcoin mining and technology company — also told Cryptooshala that the firm plans to open a mining operation in West Texas. Although the bulk of CleanSpark’s miners are located in Georgia, Holyoke explained that the company has a co-location agreement in West Texas with energy company Lancium. He said:

“Lancium controls load response, so they build large data centers that can turn power on and off based on the power curve. If a lot of power is required due to a hot day, they may turn off the power to compensate. Alternatively, if energy demand is low, they can power up and mine bitcoin.”

According to Holyoke, the CleanSpark and Lancium mining center in Texas will be launched in December this year. Like Hive, Holyoak noted that CleanSpark benefits from miner closures in Texas as there is less competition on the network. But he believes it’s beneficial for the company to have operations in Texas because of the region’s abundance of renewable energy, as well as the benevolent nature of counties looking to attract additional commercial activity through mining.

“This is a very unique market and it has renewable resources that are extremely important for sustainable mining companies,” he said. Holyoke added that with offices in Georgia and several in upstate New York, it is important that CleanSpark and other miners diversify their locations, noting that climate change and other extreme weather events can happen anywhere.

Will sustainable mining help Texas miners?

While miners in Texas have been hit by a heat wave, Holmes believes many of them are coping well, shutting down power when necessary. However, as more stable miners enter the state, established operators may want to reconsider their mining practices.

For example, Holmes explained that Hive trains authorities in the regions where they are based to help them understand their long-term environmental, social and governance goals. He said:

“In Quebec, we have a 40,000 square foot building with 30 megawatts of electricity, and we channel the heat generated by our ASIC miners to heat a 200 square foot building. The energy is being recycled and designed to house unique building structures in New Brunswick.”

In this case, Holmes noted that a long-term sustainable vision when it comes to mining can be very helpful. He added that Hive’s headquarters in Sweden have installed software that ensures that the company’s mining operations are stopped from 7 to 9 am and until 5 to 7 pm five days a week. “These are sensitive periods of peak demand. We have a strategic relationship with the region to ensure that our activities are stopped if necessary,” Holmes said. He also revealed that Hive is mining about 9.8 BTC and 100 ETH per day.

Taking a different approach, CleanSpark uses immersion cooling for bitcoin mining. Matthew Schultz, executive chairman of CleanSpark, told Cryptooshala that the company is one of the first large-scale data centers of its kind in North America to purchase immersion cooling infrastructure for its Norcross mining operation. He explained:

“Immersion cooling is the method we use to mine bitcoins. Mining machines are prepared by removing their fans and submerging them in tanks of biodegradable mineral oil. This increases mining efficiency by about 20%. The oil is recycled on site and reused as it passes through a heat exchanger that maintains a temperature of around 125 degrees Fahrenheit.”

Holyoke added that most fan-assisted mining operations are kept cold by using ambient air, so hotter climates will impact machine performance, but immersion cooling could help mitigate this factor.

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He noted that excess heat would not affect immersion cooling. However, heat waves can lead to a sharp increase in energy prices, which in turn can make the operation of machines unprofitable. According to Holyoak, this most likely applies to Riot as well, as the company announced last year using immersion cooling at their Whinstone facility.

All things considered, industry experts believe that using clean energy sources will help miners cope with climate change. Elliot David, carbon management specialist at Sustainable Bitcoin Protocol — a company that tests sustainable bitcoin mining practices — told Cryptooshala that based on recent events, every mining company will have to think about climate resilience, regardless of whether they are based they are in a hot climate like Texas or a cold climate like Norway:

“Using clean energy sources is also an important decision, because although they are intermittent, all energy systems are really exercises in balance. The network must meet supply and demand, and flexible loads like bitcoin make balancing much easier.”