Bitcoin’s network hashrate fell to its lowest level in seven months over the weekend as a powerful winter storm swept across the United States, forcing miners to scale back operations amid soaring energy demand and widespread power outages.
Important points:
- Bitcoin’s hashrate has fallen to a seven-month low as miners scale back operations to ease strain on the power grid due to the US winter storm.
- Network power dropped more than 40% before being partially restored.
- Miners have scaled back operations to stabilize the power grid.
The massive storm affected more than 30 U.S. states, bringing heavy snow, ice and subzero temperatures, and leaving about 1 million customers without power, AccuWeather said.
The extreme conditions have placed additional strain on the region’s power grid, prompting some Bitcoin miners to scale back their operations in an effort to stabilize supply.
Bitcoin hashrate drops over 40% over the weekend, then rebounds
Bitcoin’s hashrate began to decline on Friday, then plummeted over the weekend, according to data from mining analysis platform CoinWarz.
By Sunday, the network’s computing power had dropped to approximately 663 exahashes per second (EH/s), representing a drop of more than 40% in just two days.
The hashrate has since recovered and is back to around 854 EH/s as of Monday.
Oregon-based mining company Abundant Mines said the scale of the disruption was significant.
“Approximately 40% of the world’s Bitcoin mining capacity has been taken offline in the past 24 hours due to extreme winter weather,” the company said, adding that many operators have voluntarily reduced production as energy demand soars.
The company described this responsiveness as a structural advantage of Bitcoin mining, noting that operations can quickly halt when the grid is stressed and resume when conditions normalize.
The United States accounts for the largest share of global Bitcoin mining activity.
Estimates from the Hashrate Index suggest the country accounts for nearly 38% of the network’s total hashrate, and a 2024 report from the Energy Information Administration identified at least 137 crypto mining facilities nationwide.
Industry advocates argue that miners are playing an increasingly important role in grid stability by acting as flexible energy consumers.
Bitcoin miners help stabilize Texas power grid during winter storm
Mining operations absorb excess power generated by wind and solar installations, which can quickly cut off power during peak demand periods.
Bitcoin ESG researcher Daniel Batten told X that a demand response program involving miners helped stabilize the Texas power grid during the storm.
Weather events also weighed on Bitcoin production. Julio Moreno, an analyst at CryptoQuant, said several major U.S. mining companies have seen a significant drop in daily production.
A recent analysis by independent researcher Daniel Batten found that rather than burdening the power system, Bitcoin mining could strengthen the power grid and reduce electricity costs for consumers.
His research challenges common claims that mining destabilizes power grids or drives up energy prices, and uses peer-reviewed research and operational data to argue that the industry’s flexible use of electricity can have tangible systemic benefits.
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