Bitcoin Miners Powered Off as Winter Storm Battered North America

Computing power on the Bitcoin network dropped about 40% over the weekend.

AccessTimeIconDec 26, 2022 at 10:54 a.m. UTC
Updated May 9, 2023 at 4:05 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto miners across the U.S. powered down over the weekend as a powerful storm swept across North America.

The bitcoin mining hashrate, a measure of computing power on the blockchain, dropped about 100 exahash per second (EH/s), or 40%, to 156 EH/s, between Dec. 21 and Dec. 24, data from BTC.com shows. It returned to about 250 EH/s as of Sunday.

The practice, known as curtailment, is touted as a way for miners to help electricity grids. The miners' steady demand ensures power producers are bringing in revenue to offset costs, but they can power off when demand from other sources is high, such as during winter storms.

The U.S. and Canada have been hit by an Arctic storm that sent temperatures as low as -50°F (-45°C) in the western U.S. state of Montana, according to the BBC, and covered western New York state with as much as 43 inches of snow. At least 37 people died as result of the storm, CNN reported.

Foundry USA, the biggest mining pool in the U.S., lost more than half of its hashrate on Dec. 23 – the biggest loss of any major pool – according to statistics from information platform Mining Pool Stats. Foundry is owned by CoinDesk’s parent company, Digital Currency Group.

Some of the U.S.’ biggest miners also curtailed operations. These included Riot Blockchain (RIOT) and Core Scientific (CORZ), which filed for Chapter 11 bankruptcy protection last Wednesday. In Texas, 99% of industrial-scale bitcoin mining load was turned off at 6 a.m. on Saturday, Lee Bratcher, founder and president of industry group Texas Blockchain Council, said in a LinkedIn post.

Dennis Porter, who advocates for the industry through the nonprofit Satoshi Action Fund, said the miners’ curtailment is proof that they are supporting the electric grid.

Denis Rusinovich, a Europe-based miner, tweeted that the big drop in computing power is “another confirmation that bitcoin's geographical diversification is vital.”

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.