January is considered the coldest month of the United States. During the first month of 2025, the country underwent an explosion of the Arctic, dropping the average temperature of states like Texas that 11 degrees Celsius. The data suggest that the country’s current cold time has affected the Bitcoin mine industry severely. Let us dive to understand how the explosion of the Arctic disturbed the mining industry.
Us Bitcoin Mining and the role of Texas
The United States is a leading player in the BTC mining industry. It controls at least 36% of the global Bitcoin mining industry. Above all, Texas, a state in the United States Center-South Center region, alone manages more than 17% of the mining industry.
How the cold disrupts BTC exploitation
The Arctic explosion has dropped the average temperatures of several convivial states such as Texas in the United States. On January 22, Texas temperature fell as low as zero degree Celsius. Households in the United States depend mainly on their electric heating systems to protect themselves from the cold. Naturally, during the cold months, the cost of electricity increases.
What aggravates such a situation is the potential of winter storms to disrupt cheap electricity sources like wind and solar. This forces the country to rely strongly on natural gas. Depending on too much natural gas – infamous for its massive price fluctuations – makes the electricity production process very expensive.
Electricity on the overvoltage and mines of the BTC mines
While the price of natural gas increased due to the increase in demand and the drop in supply, the average electricity price increased sharply in January. As the price of electricity increases, the profitability of mining decreases. The reports suggest that Texas, East and South-East miners had to face more economical hours of extraction in January. The Table of Bitcoin difficulty adjustments indicates that many bitcoin minors have closed their mining operations due to the rise in electricity prices.
The graph shows that the Bitcoin market experienced its first negative difficulty adjustment in four months on January 26, 2025.
What is the next step for Bitcoin operation?
Experts believe that the situation will return to normal once the weather scenario in the regions adapted to mining, like Texas, in the United States returns to normal.
Texas is known for its hot summers and soft winters cool. The state generally knows spring (from March to May), summer (from June to August), fall (September to November) and winter (from December to February).
The explosion of the Arctic of January 2025 exposed the vulnerability of Bitcoin Mining to extreme weather conditions. As temperatures increase, mining operations should recover. However, this event highlights the need for minors to closely monitor energy costs and weather risks.
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Faq
The cryptography intermediary consists in solving complex puzzles on a blockchain to authenticate transactions and gain cryptocurrency awards.
Profitability depends on material costs, electricity, cryptography prices and network difficulties. Use mining calculators to estimate income.
The challenges include high electricity costs, material spending, heat / noise, competition from large farms and regulatory problems.