High Cost of Energy Shuts Down 5,000 Bitcoin Mining Rigs in the US
A company that operates two bitcoin mining farms in the US state of Georgia has announced that it has suspended operations in the region. Compass Mining manages approximately 5,000 ASIC units.
Farms were forced to close due to a more than 50% increase in electricity costs, Compass Mining co-founder Thomas Heller said in a statement to other outlets.
Compass Mining does not have its own cryptocurrency mining facility. Alternatively, the Company owns farms or complexes owned by third parties that manage these places. Thus, its location will act as an intermediary between the owners and those who want to rent a place to mine their equipment.
Georgia Ranchers also has facilities in Texas where customers can move their mining equipment for reactivation if they wish. Please note that the delivery and commissioning process will take approximately one month.
Texas farms in particular are starting to get dirty. Delays in their integration into the local grid have forced them to rely entirely on their own generators. They also had problems with the equipment overheating. In fact, Compass Mining clients who are miners in Texas can choose to move their equipment to Georgia where they can enjoy greater stability.
According to Heller, there have been no major problems at the Texas plant since the electrical system was installed. Therefore, they have high hopes for the mobilization of the miners from Georgia.
Will these 5,000 mining rigs have an impact on the price of Bitcoin?
Assuming all farm equipment in Georgia is retrofitted, eg Antminer S19, which can average 90 t/s, we're talking about an estimated 450 PH/s mining loss. This corresponds to more than 0.2% of the total hash rate of the Bitcoin network. In short, block production is not affected by the time the device is idle.
The energy crisis has been affecting miners for some time. Since June, Bitcoin miners in Chelan County, Washington now pay 30% for their electrical services. The new tariffs were introduced because the region's authorities considered that the operation required too much power from the grid.