Texas Data Center Moratorium Won't Hit Bitcoin Miners Hard
Texan Bitcoin miners are unlikely to be significantly impacted by Governor Greg Abbott's moratorium on data center project approvals, according to Bernstein analysts.
The order, issued Monday, directs the Public Utility Commission of Texas and ERCOT (Electric Reliability Council of Texas) to audit all data centers seeking to connect to the state's power grid. The duration of the audit was not specified.
Bernstein analysts believe that this moratorium will throttle speculative data center projects but won't affect most Bitcoin miners in Texas, as they are already under contract for approved electric capacity.
Cipher Digital (CIFR), Core Scientific (CORZ), and CleanSpark (CLSK) may be more exposed to public opposition during ERCOT's approval process. However, IREN (IREN) and Riot Platforms (RIOT) have operations that are fully ERCOT grid approved, making them less vulnerable.
CIFR shares were down over 7% in premarket trading on Tuesday after reporting a second-quarter loss of $0.65 per diluted share.