Texas Grid Saved by Bitcoin Miners, But Their AI Pivot May Be a Double-Edged Sword

Texas' power grid narrowly avoided collapse last week when Bitcoin miners curtailed their electricity usage, but their lucrative pivot to AI is now stripping away this emergency brake. The state's grid operator, ERCOT, has partnered with large crypto mining facilities and data centers through voluntary agreements that allow them to reduce their power consumption during peak demand periods.

In August 2023, Riot Platforms demonstrated the effectiveness of these curtailment agreements by reducing its power usage by over 95% during peak hours. The company earned $31.7 million in credits under its ERCOT contract and another $7.4 million from the grid operator's demand response program.

The arrangement has continued to hold through a weaker market, with Riot earning $56.7 million in credits across 2025 and another $21 million in the first quarter of 2026 - a 169% increase on the same quarter a year earlier. However, as Bitcoin prices have recovered, the incentive for miners to reduce their power usage has decreased.

ERCOT's peak demand reached 91,308 megawatts last week, breaking its all-time record twice in two days. The grid operator estimates that one megawatt serves about 250 homes during peak hours, putting last week's demand at around 22.8 million households.