Shopping for the cheapest energy in the country can be a confusing and is not always an apples-to-apples comparison process. There are select industries where location relies heavily on mostly one factor, and crypto mining is one such industry.
Electricity Consumption for Mining Cryptocurrencies
The electricity consumption required to verify a single bitcoin transaction is the equivalent of processing 500,000 VISA transactions. With relatively minimal recurring costs outside of obtaining the startup equipment, it’s usually cost-effective and advantageous for cryptocurrency miners to move their server installation and facilities to where their largest overhead cost — electricity — is reduced the most
Unfortunately, due to the relatively newness of the crypto mining industry and the lack of insight into existing operations, there isn’t enough relevant data or information online to make a sound decision on where to set up your bitcoin mining operation due to the different variables. It helps to have an experienced guide on your side.
Electricity Pricing – State by State
Different state’s pricing various by region, industry, season, and numerous other factors. Your goal should be to find the absolute cheapest secured energy rate — you won’t want to approach this by looking for states with the lowest electric rate, but by being more granular and finding the best energy rates/plans on a county/city and exact address location basis.
For example — while a state like Texas may be ranked on the EIA’s list of states for the cheapest energy in the US, it may have the best rate for certain cryptocurrency mining facilities depending on its exact location within the state.
Index, Variable, Fixed-Rate Plans in Texas
Texas can be the best possible spot for those who want to lock in a long-term fixed contract that will guarantee stable and cheap energy rates for several years. Over the years from time to time, off grid options or utilities in other states have attracted miners with the promise of potentially low-cost power rates only to have to raise rates rapidly later or going as far to shut down close operations abruptly, leaving the power consumers scrambling to find other options.
Texas even has attractive options for those who aren’t interested in a fixed energy rate. Index or variable rate contracts carry the potential for among the lowest energy rates anywhere for those who are willing to carry some risk or have the flexibility to close operations when power rates get too high.
There is an abundance of suppliers in Texas with numerous plans and Eisenbach Consulting has the experience and connections to help you navigate that. Whether you are only looking to operate a hand full of 3250 Watt or 1800 Watt riggs, or fill an entire warehouse, we can help you set up the right energy contract to maximize your profits.
Eisenbach Consulting can help guide already established operations looking to broker a cheaper power plan, or those just looking to start out.