Texas Bitcoin Mining Operations Undergo Intensive Due Diligence

The
CoinShares
research
team
recently
conducted
a
due
diligence
trip
to
Texas,
assessing
several
Bitcoin
(BTC)
mining
facilities,
according
to

CoinShares.
This
evaluation
included
Core
Scientific,
IREN,
Riot
Platforms,
and
Galaxy
Digital,
entities
in
which
CoinShares
has
prior
investments
or
that
are
included
in
their
BLOCK
Index
and
WGMI.

Texas:
A
Growing
Hub
for
Bitcoin
Mining

Texas,
traditionally
recognized
for
its
agriculture
and
oil
sectors,
is
swiftly
becoming
a
key
player
in
the
data
center
industry.
The
state’s
low-cost
land,
affordable
power,
and
favorable
political
climate
make
it
an
attractive
location
for
Bitcoin
mining
operations.
Each
company
visited
by
CoinShares
showcased
unique
cooling
solutions,
vital
for
efficient
mining
in
Texas’s
hot
climate.
While
some
cooling
methods
were
found
to
be
excessively
costly,
others
proved
to
be
more
economical.

Innovative
Cooling
Solutions

IREN
stood
out
with
its
large-scale,
low-cost
air-cooled
solutions,
emphasizing
advanced
filtration
and
ventilation
systems.
At
their
Childress
site,
the
CoinShares
team
observed
the
rapid
adjustment
capabilities
of
IREN’s
machines
to
align
with
grid
requirements
and
power
pricing.

Galaxy
Digital,
which
acquired
the
Helios
site
from
Argo
Blockchain
for
$65
million,
is
moving
away
from
costly
immersion
cooling
in
favor
of
evaporative
air
cooling.
This
site
has
the
potential
to
scale
from
its
current
200MW
to
over
800MW.
Galaxy
also
practices
curtailing
mining
during
high
power
prices,
selling
unused
power
back
to
the
grid,
thus
aiding
in
grid
load
balancing.

Challenges
and
Expansions

Core
Scientific,
despite
its
financial
challenges,
operates
large
sites
with
proven
air-cooled
technology
and
is
expanding
into
AI,
having
secured
significant
hosting
contracts
with
Coreweave.

Riot
Platforms
was
noted
for
its
technical
advancements
and
capital-intensive
operations,
particularly
at
its
Corsicana
site,
which
aims
to
scale
to
1GW.
Riot’s
Rockdale
site
features
mining
hardware
cooled
in
dielectric
fluid
baths,
a
cutting-edge
approach
that
allows
for
overclocking
to
boost
income
when
prices
rise.

Future
Outlook

Post-halving,
a
~14%
drop
in
hashrate
was
observed,
pushing
out
inefficient
miners.
However,
CoinShares
anticipates
this
decline
to
be
temporary.
The
miners
visited
have
substantial
expansion
plans,
which
are
likely
to
elevate
the
overall
network
hashrate
to
over
700
exahash
by
the
end
of
the
year.
Listed
miners
collectively
aim
to
increase
hashrate
from
118
exahash
at
the
end
of
2023
to
234
exahash
by
the
end
of
2024,
marking
a
98%
rise.

The
Bitcoin
mining
industry
is
maturing
rapidly
and
becoming
more
environmentally
conscious.
Miners
are
curtailing
power
usage
during
peak
demand,
improving
grid
efficiency,
and
investing
in
renewable
energy
and
grid
infrastructure.
This
growing
environmental
awareness
is
garnering
increased
political
support
for
the
industry
in
Texas.

Image
source:
Shutterstock