Investigation uncovers troubling trend that could drive up household energy bills: 'Continuing to exploit the system for their profit'

Texas' rapidly expanding cryptocurrency mining industry is drawing new scrutiny after an investigation revealed how much electricity these operations are consuming — and what that could mean for everyday residents and the state's already-strained power grid.

What's happening?

According to a Straight Arrow News investigation, large cryptocurrency mining operations in the state consumed more electricity in 2024 than all residential customers in San Antonio and El Paso combined. Public records show that 22 registered crypto mines used more than 14.7 million megawatt-hours of electricity — roughly 3% of all power produced — though the data was limited to facilities able to draw at least 75 megawatts of grid power.

That amount of energy could power more than 1 million homes for an entire year. On average, each of the 22 facilities consumed over 668,000 megawatt-hours. Even more concerning for grid planners, the industry's instantaneous power demand — measured in megawatts — is growing fast. Demand from crypto mines reached about 4,288 megawatts by late 2025 and is projected to exceed 5,300 megawatts by 2027.

Industry insiders argue those figures are misleading, saying crypto mines can quickly power down when electricity prices spike for the sake of profitability, which also correlates with when demand is higher and thus when crypto's use would cause more of a problem.

"Bitcoin mining is by economic necessity a non-rival consumer of energy," said bitcoin investor and sustainability advocate Daniel Batten, per Straight Arrow News. Batten noted that because cryptocurrency mines are flexible in when they operate, they "not only help stabilize the grid, they also provide additional revenue for renewable energy operators, which has been shown to accelerate the green energy transition."

Still, not all experts are convinced that flexibility offsets the burden, particularly over the long haul into the future with the advent of battery storage solutions that are able to harness excess power capacity for later use.

"Any cryptocurrency miners on [the Electric Reliability Council of Texas grid] using electricity are market demand over and above that of regular Texans," University of Houston energy economist Ed Hirs told SAN.

Why is this concerning?

Texas already walks a fine line when it comes to energy reliability, especially during extreme heat and cold. Adding massive, energy-hungry operations to the grid increases baseline demand, which can push up wholesale electricity prices and extend reliance on power plants that burn polluting fossil fuels such as coal.

Rice University professor Daniel Cohan said the data suggests crypto mines may be "propping up wholesale prices and natural gas use on mild days," potentially raising costs for households even when demand would otherwise be lower. Consumer advocates also question programs that pay crypto companies millions to temporarily shut down during peak demand, arguing those payments come from the same system that serves residents.

Environmental groups have been especially critical. Mandy DeRoche of Earthjustice called the situation an example of companies "continuing to exploit the system for their profit."

What's being done about it?

State lawmakers have taken some steps toward transparency, requiring large mining operations to register with regulators. However, efforts to make detailed data public have run into resistance, with ongoing legal battles over disclosure.

At the same time, crypto firms argue they can support cleaner energy by locating facilities near wind, solar, and other flexible power sources. For example, Mara Holdings bought a wind farm in Texas last year for its own bitcoin mining use, and while the purchase diverted the farm away from the grid, it still would help to facilitate the advancement of and profitability of renewable energy.

The path forward likely involves clearer rules, better data, and stronger safeguards to ensure large energy users don't undermine grid stability or drive up costs for everyone else.

Should the federal government deregulate America's energy market? Absolutely 💯 States should choose 🇺🇸 I have no idea 🤔 I don't care 🤷 Click your choice to see results and speak your mind.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.