Bitcoin mining operations in the US slowed due to a severe winter storm, significantly reducing hashrates for major pools like FoundryUSA and Luxor.
The storm’s impact highlights the vulnerability of Bitcoin infrastructure to extreme weather, affecting market stability and miner revenues amid ongoing hashrate fluctuations.
The recent US storm caused a significant drop in Bitcoin hashrate, impacting operations of major mining entities like FoundryUSA and Luxor.
The US storm had a profound effect on Bitcoin mining by reducing the hashrate of major players like FoundryUSA by 60%, underscoring the vulnerability of the mining sector to weather conditions.
US Storm Causes 60% Drop in FoundryUSA Hashrate
The recent US winter storm resulted in a notable drop in Bitcoin hashrate. Major mining entities, including FoundryUSA and Luxor, were forced to curtail operations due to weather conditions. Mitchell Askew, Host, Blockware Solutions, remarked,
Inclement weather in the US causes a noticeable impact on Bitcoin mining, on the total hash rate of the network.– YouTube
Significant players, including FoundryUSA and Luxor, saw substantial reductions in hashrate. Hashrate for FoundryUSA dropped by approximately 60%, while Luxor’s decreased by nearly the same proportion, reflecting the severity of the storm’s impact.
12-Minute Bitcoin Blocks Emerge Post-Storm
The temporary reduction in mining operations led to a slowdown in Bitcoin block production, extending average block time to 12 minutes. Such shifts may influence miner revenue and network security as companies seek resiliency.
Experts anticipate potential regulatory and financial repercussions. The US shares approximately 38% of the global Bitcoin hashrate, heightening the market’s dependency on weather-stable operations. This episode underscores the importance of renewable energy and adaptive demand response.
US Miners Learn from 2021 Texas Storm
The incident mirrors the 2021 Winter Storm Uri in Texas, causing similar disruptions. Unlike that event, ERCOT’s improvements have mitigated some impacts, demonstrating increased capacity and flexibility.
Kanalcoin experts highlight this as an opportunity for miners to evaluate their resilience strategies. They stress that leveraging renewable energy and automated systems can vastly enhance operational continuity during future weather disturbances.
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