Rhodium Enterprises has disclosed in a filing to the US Securities and Exchange Commission (SEC) that it uses 125 MW of mining power capacity at its mining site in Texas. As reported by CoinTelegraph, it will launch its second mining site in Texas after the IPO. This will increase the firm’s bitcoin mining capacity by 225 MW. Texas has emerged as a bitcoin mining hub in the US over the years. However, this has also increased the pressure on the supply of electricity in Texas. Because of this the people of this state are opposing bitcoin mining.
Data Center Dynamics reports that Texas is offering incentives such as 10-year tax exemptions, sales tax credits, and state training for crypto miners. This is leading to a boom in bitcoin mining in Texas. With this, Texas’ grid operator Electricity Reliability Council of Texas (ERCOT) is projected to increase the electricity load by about five times. ERCOT has said that it will need to generate about 5,000 MW more electricity for crypto mining and data centers.
Mining cryptocurrencies like bitcoin requires solving complex algorithms on advanced computers. These computers need to be constantly plugged in and this increases the consumption of electricity. The lack of electricity from bitcoin mining has led to protests and restrictions in some countries. China banned bitcoin mining last year because of this. The European country of Kosovo has also recently banned bitcoin mining. Due to the lack of electricity in Iran, it has been banned for three months. Iran imposed a temporary ban on bitcoin mining last year as well.<!–
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