U.S. Digital Chamber of Commerce Blocks Texas’ Anti-Bitcoin Energy Bill

U.S. Digital Chamber of Commerce opposes Texas' anti-Bitcoin energy bill

Compiled by: Sister Shen, DeepChain

Grassroots movements pay off

The US blockchain industry organization Digital Chamber of Commerce announced on the 30th that the “anti-Bitcoin mining bill” submitted to the Texas legislative body did not pass a vote to become a law.

Texas buried the anti-Bitcoin mining bill. The Digital Chamber of Commerce, together with the Texas Blockchain Committee and the Satoshi Action Fund, successfully defeated an anti-Bitcoin mining bill.

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The bill, known as SB1751, is ERCOT’s demand response plan for the state’s power grid, which would limit the total amount of power Bitcoin mining companies can “sell” to ERCOT. The demand response plan pays “power points” to participating companies by shutting down operations when there is a surge in grid demand. The bill would limit the number of participants in the plan to 10%.

It also includes the repeal of tax exemptions for mining companies in industries with similar electricity consumption.

The state Senate passed SB1751 unanimously in April. Subsequently, industry groups such as the Digital Chamber of Commerce launched the “Don’t Mess with Texas Innovation” campaign. He organized opposition groups in Texas and across the country, urging lawmakers to oppose the bill by phone, letter, and social media. It is said that more than 5,000 people participated in the movement.

This grassroots effort was so successful that SB 1751 was never put to a committee vote in the Texas House of Representatives and the bill was defeated.

Dennis Porter, co-founder and CEO of the Bitcoin advocacy group Satoshi Action Fund, said: “This victory ensures the continued progress of US energy innovation and highlights the power of the Bitcoin community. It really is.”

Texas and mining companies

It is well known that Texas Governor Abbott supports Bitcoin mining, and the state actively attracted mining companies when China banned mining in 2021.

Due to relaxed regulations, Texas abolished fixed tariffs and adopted a system where electricity prices fluctuate based on demand. Unlike hospitals and other industries that require stable power supply, mining companies can even turn off machines at any time based on demand and electricity prices to avoid power grid supply during peak hours.

Due to the effects of heat waves and cold weather, mining companies in Texas have implemented measures to suspend operations when asked to conserve electricity. In return, the mining companies receive “power credits” that can be used to pay for electricity, thereby reducing overall operating costs, which is an important factor in management.

The financial data of mining giant Riot Blockchain shows that the company will receive $6.5 million and $27.3 million in power credit quotas in 2021 and 2022, respectively, accounting for 3% and 10% of annual revenue. Including power credits, the average mining cost per 1 BTC in 2022 will be $11,225, a decrease of 6% from the previous year.

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