Texas bitcoin miners seen avoiding major disruption from grid moratorium

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Texas miners and grid moratorium

Highlights

Texas Governor Greg Abbott ordered audits of all data centers seeking grid connection, delaying new projects but leaving established Bitcoin miners largely unaffected.
Bernstein analysts note approved power capacity and long-standing operations in Texas make existing Bitcoin mining sites more valuable amid political and ERCOT scrutiny of new development.
Cipher Digital shares dropped over 7% in Tuesday premarket after reporting a Q2 loss of $0.65 per diluted share versus $0.12 loss last year, reflecting industry uncertainty.

Audit order reshapes Texas data center pipeline

As reported by Cointelegraph, citing The Texas Tribune, Governor Greg Abbott on Monday directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to audit all data centers seeking to connect to the state grid, although no timeline for the review has been specified.

Bernstein analysts say that limits the immediate effect on established Bitcoin mining sites in Texas, because many are already contracted for approved power capacity. In a note to clients on Tuesday, the research team led by Gautam Chhugani says the measure is more likely to slow speculative projects and increase the value of sites with longer development records, self-funded infrastructure and established local relationships.

The analysts add that Bitcoin mining facilities are relatively well positioned under that framework because of their longer build timelines and local operating history. They say the audit effectively throttles the future pipeline of new data center capacity rather than disrupting current approved operations.

Approved capacity gains value amid political pushback

Bernstein says Cipher Digital, Core Scientific and CleanSpark could face greater exposure to future public opposition tied to data center growth in Texas, especially during ERCOT reviews that convert project pipelines into grid-connected power capacity. The analysts say growing political resistance and state-level restrictions on fresh capacity make already approved megawatts more valuable.

They highlight IREN's Texas mining operations as fully approved on the ERCOT grid, alongside Riot Platforms' operations. That positioning could leave those companies better placed if approval bottlenecks persist.

Market reaction is already visible for some miners. Cipher Digital shares are down more than 7% in Tuesday premarket trading, according to Yahoo Finance data, after the company reports a second-quarter loss of $0.65 per diluted share, wider than a loss of $0.12 per diluted share a year earlier.

In our earlier article on the GRID Savings Act, we covered a proposal to make very large new electricity users pay for the grid upgrades required to connect, aligning their obligations with long-standing rules applied to new power plants. We also noted the bill’s focus on clearer interconnection requirements and the option for large users to fund certain transmission upgrades in exchange for service, aiming to expand capacity while reducing the cost burden on households and small businesses.

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