The Impacts of Cryptomining

Cryptocurrency mining in Texas has grown rapidly, with five of the ten largest Bitcoin mines located in the state as of April 2023. These operations consume vast amounts of energy, which the document claims drives up electricity prices for consumers and increases emissions from gas and coal plants. The report highlights how miners profit from Texas's deregulated energy market and ERCOT's demand-response programs, often receiving subsidies and tax exemptions while providing few local jobs. Additionally, the document notes negative local impacts, including significant noise pollution and the diversion of water resources in drought-stricken areas.

• Cryptocurrency mining operations in Texas place significant strain on the electrical grid, with projected demand from new facility applications reaching nearly 42 GW by 2027, an amount sufficient to power over 8.3 million Texas homes during peak demand.
• The expansion of Bitcoin mining is expected to increase energy prices for Texas consumers; one BloombergNEF scenario predicts peak energy prices could rise by 30% if peak load triples, or by approximately 80% if peak load increases sixfold.
• Crypto miners leverage Texas's deregulated market and ERCOT's Responsive Reserve Service to generate high profits, including payments for agreeing to shut down operations regardless of whether they actually do so. For instance, five Texas facilities earned at least $60 million from this program since 2020.
• Mining operations receive substantial financial advantages through reduced electricity rates—sometimes paying only 15% of residential rates—and tax incentives, such as the City of Corpus Christi foregoing $7 million annually in sales tax and franchise fees for Bootstrap Energy.
• Beyond energy use, cryptomining causes local environmental and social harm, including noise levels reaching 95 decibels and high water consumption; for example, the City of Corsicana plans to sell 1.5 million gallons of water per day during peak summer months to Riot Bitcoin in drought-stricken Navarro County.

APA

Earthjustice (2023). The Impacts of Cryptomining. https://earthjustice.org/feature/cryptocurrency-mining-texas

Chicago

Earthjustice. The Impacts of Cryptomining. 2023. https://earthjustice.org/feature/cryptocurrency-mining-texas.

Wikipedia

{{cite report |author=Earthjustice |title=The Impacts of Cryptomining |date=12 September 2023 |url=https://earthjustice.org/feature/cryptocurrency-mining-texas |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{earthjustice2023impacts, author = {{Earthjustice}}, title = {{The Impacts of Cryptomining}}, institution = {Earthjustice}, year = {2023}, month = sep, url = {https://earthjustice.org/feature/cryptocurrency-mining-texas}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }