Texas Grid Audit Sparks Uncertainty for New Data Centers

Texas Governor Greg Abbott has ordered audits of all data centers seeking to connect to the state's power grid, slowing down new projects but largely leaving established Bitcoin miners unaffected. The audit will review existing contracts and approved electric capacity, giving a boost to sites with longer development records and self-funded infrastructure.

Bernstein analysts say that most Bitcoin miners operating in Texas already have contracts for approved power capacity, making them less likely to face major disruptions. This positioning could give companies like IREN and Riot Platforms an edge if approval bottlenecks persist.

The move has sent ripples through the industry, with Cipher Digital's shares dropping over 7% in premarket trading after reporting a Q2 loss of $0.65 per diluted share.