American Digital Chamber Blocks Texas Anti-Bitcoin Energy Bill

Compilation: Sister Shen, DeepChain

Grassroots movement pays off

**The American blockchain industry organization Digital Chamber of Commerce announced on the 30th that the "Anti-Bitcoin Mining Act" submitted to the Texas Legislature was passed without a vote and became law. **

Texas Buried Anti-Bitcoin Mining Bill. The Chamber of Digital Commerce, along with the Texas Blockchain Commission and the Satoshi Action Fund, successfully defeated an anti-Bitcoin mining bill.

Known as SB1751, the bill is a demand response program for the state's power grid, ERCOT, that would limit the total amount of electricity that bitcoin mining companies can "sell" to ERCOT. The demand response program pays partner companies "electricity credits" by shutting down operations when grid demand spikes. The bill caps participation in the program at 10%.

It also includes removing tax exemptions that apply to mining companies in industries that consume similar electricity.

The state Senate unanimously passed SB1751 in April. This was followed by industry groups such as the Chamber of Digital Commerce launching the "Don't Disturb Texas Innovation" campaign. He has organized opposition groups in Texas and across the country, urging lawmakers to oppose the bill via phone calls, letters and social media. More than 5,000 people are said to have participated in the movement.

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

“This victory ensures the continuation of energy innovation in the United States and highlights the strength of the Bitcoin community. It really is,” said Dennis Porter, co-founder and CEO of Bitcoin advocacy group Satoshi Action Fund.

Texas and mining companies

Texas Governor Abbott is known to support Bitcoin mining, and when China bans mining in 2021, the state is aggressively courting mining companies.

As a result of deregulation, Texas eliminated fixed tariffs and adopted a system in which electricity prices fluctuate based on electricity demand. Unlike hospitals and other industries that require a steady supply of electricity, mining companies can even shut down machines at any time based on demand and electricity prices, thereby avoiding grid power during peak hours.

In fact, due to the heat wave and cold weather, mining companies have taken the step of suspending operations when Texas requires power conservation.

In return, mining companies receive “power credits” that can be used to pay electricity bills, reducing overall operating costs, a factor that cannot be ignored in management.

Financial figures from mining giant Riot Blockchain show the company will receive $6.5 million in power credits and $27.3 million in 2021 and 2022, representing 3% and 10% of annual revenue, respectively. Including electricity credits, the average mining cost per 1 BTC will be $11,225 in 2022, down 6% from the previous year.