Week in BTX: Texas Bitcoin Miners Caught in PUC vs ERCOT Fight
PUC claims significant risk to the ERCOT grid if large loads like Bitcoin miners have the ability to instantly cycle off and on
Welcome to the "Week in BTX" newsletter, your weekly source for all things Bitcoin and Texas. The Texas Public Utility Commission (PUC) recently voted to make substantial changes to the state’s electricity market in an effort to make the grid more reliable.
However the major change, known as “performance credit mechanism,” is controversial and faces hurdles from key elected officials like State Senator Charles Schwertner (R-Georgetown), pitting the powerful Lt. Governor Dan Patrick and the Texas Senate against Governor Greg Abbott’s appointees at the PUC.
Meanwhile, large on grid Bitcoin miners in Texas are caught up in this fight between ERCOT, the PUC and the politicians.
ERCOT’s Large Flexible Load Task Force (LFLTF) has been working with Bitcoin miners and other large loads on integrating them into the ERCOT system. But the PUC recently issued draft comments stating that there is significant risk to the ERCOT grid if large flexible loads like Bitcoin miners are not regulated more.
“There is a significant risk to the ERCOT region if large loads, almost instantly, have the ability to go on or off the grid. To limit the reliability risk created by these large flexible loads, the PUCT recommends that ERCOT have the authority to require large flexible loads register and follow standards on allowable behaviors.”
As the Texas Legislature gets to work this session they will likely have the last word on the various efforts to make the state’s electricity market more reliable. Will ERCOT, the PUC, Governor Abbott, Lt. Governor Patrick, the Texas House and Senate and the energy industry come together with an agreed upon solution, or will they battle it out till the last days of session and into a special session(s)?
If you are an on grid Texas Bitcoin miner it is well past time to get engaged in the political and legislative process. Even in the business friendly regulatory environment that is Texas, the regulators are coming.
Digital Wildcatter’s Empower Bitcoin is the only bitcoin mining event with a focus on energy — bringing together energy, mining, finance, and other professionals in the city that powers the world. Empower Bitcoin is March 8-9, 2023 in Houston. Use “BTX” for 10% off all tickets.
General
Bear Market Vibes: Coindesk estimates over 29,000 jobs have been cut in “crypto” as of Jan. 25 2023. Roger Ver owns bankrupt Genesis $20 million for bad trades.
Elon Musk’s Tesla sold 75% of its Bitcoin holdings in July 2022, but has finally developed diamond hands and has HODL its remaining Bitcoin through the wild end of 2022, SEC filings show.
Prime Trust notified customers that it withdrew its Texas Money Transmitter License application, rendering the firm ineligible to operate in the Lone Star State, although it intends to reapply.
Meanwhile, Strike has been approved for a Texas money transmission license and will provide direct asset custody services for Texas customers.
Public Policy/Politics/Regulatory
The 88th Texas Legislative Session convened in Austin for 140 days. Follow along with the #txlege hashtag on twitter. The legislative process starts slow and ends in a mad dash to the finish line, stay tuned for calls to action in the coming weeks.
Axios covered Dennis Porter and Satoshi Action Fund’s efforts to educate state and federal law makers about how Bitcoin mining could be used to finance and mitigate a longstanding environmental problem, orphaned gas wells.
US Senator Ted Cruz (R-Texas) reintroduced the Adopting Cryptocurrency in Congress as an Exchange of Payment for Transactions Resolution, also known as the ACCEPT Resolution, that encourages (but not requires) Capitol gift shops, food vendors and vending machines to accept cryptocurrency as a form of payment.
The US House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion released its members, and unfortunately no Texans are on the subcommittee. Our friends at Blockchain Tipsheet, who focuses on federal policy, reports that the members have all shown interest in crypto and some are supportive.
Subcommittee Chairman French Hill appeared on CNBC and said the subcommittee’s priorities are privacy law, stable coin bill, securities & commodities regulatory framework and SEC/FTX oversight.
The White House released a short blog post detailing The Administrations roadmap to mitigate cryptrocurrencies’ risks.
Mining
Galaxy Mining dropped their 2022 Bitcoin Mining Review.
“If 2021 was the big breakout year for mining, then 2022 can easily be thought of as the reversion to the mean as miners faced the perfect storm of headwinds….Survival is now the name of the game, and growth is secondary”
TLDR: Twitter Thread from Galaxy Mining’s Amanda Fabiano.
Financial Times reports on the financial incentive Bitcoin miners have participating in voluntary curtailment programs to stabilize the grid.
Forbes on “Why No One Saw The Success Of Demand Response Coming” and cites Texas Bitcoin miners.
Events
NAPE Bitcoin Mining Pavillion Feb. 2, 2023 in Houston
Austin Bitcoin Club Feb. 2, 2023
BitBlockBoom Fort Worth Bitcoin Meetup Feb. 8, 2023
Midland Bitcoin Meetup Feb. 9, 2023
Dallas Bitcoin Meetup Feb. 9 2023
Round Rock Bitcoiners Meetup Feb. 9, 2023
Austin BitDevs Feb. 16, 2023
Digital Wildcatter’s Empower Bitcoin March 8-9, 2023 in Houston. Use “BTX” for 10% off all tickets.
Dallas Bitcoin Meetup March. 9 2023
Austin BitDevs March 16, 2023
SXSW Bitcoin Takeover March 17, 2023 at the Bicoin Commons in Austin
Bitcoin 2023 May 18-20, 2023 in Miami. Use “TEXASBITCOIN” for 10% off all tickets.
Mining Disrupt July 26-27, 2023 in Miami. Use “TEXASBITCOINALLIANCE” for 20% off tickets. applied.
BitBlockBoom August 24-27, 2023, in Austin. Use “WeekInBTX” for 10% off all tickets.
East Texas Bitcoin Alliance Meetup (Join the facebook group for details)
LinkedIn says Bitcoin and crypto job postings grew 395% in 2021: 3x the tech industry. Have a Bitcoin related job you want to promote? Reach out!
Jobs
Compass Mining is hiring a facility technician in Dallas
Bitcoin miner outside of Lubbock, Tx is hiring General Labor Teammates
Riot is hiring for a 10-week internship program designed to empower the next generation of innovators by giving them first-hand experience in solving real-world problems
Riot is hiring Operations Manager, Electrical Field Engineer and IT Technician in Rockdale and Corsicana
Giga Energy is hiring a Director of Manufacturing and EPG Shop Technician in the Beaumont area
Poolin is hiring IT Technicians in Pecos
Core is hiring Finance, accounting and operations positions in Austin
The Blockchain Association’s job board shows 21 Texas based jobs
Bitcoiner Jobs shows 2 Texas based Bitcoin jobs
People on the Move
Send me your career moves!
Bitcoin Marketplace
I am considering adding a “Bitcoin Marketplace” section to the newsletter. Send me your feedback on this idea and what types of products and services you would find valuable. Reach out if you have something you want to list or are in search of.
Bitcoin Citadel: Bear Market Edition
The 58 acre Buffalo Heights ranch in Edwards County is on the market for about 20 Bitcoin. The ranch offers a newly constructed two story 1800 sq ft metal cabin with steel beams, concrete flooring, and fully insulated. The terrain is moderately steep with panoramic views with very large bottom valley filled with large live oak and mesquite. Wildlife includes whitetail deer, axis, aoudad, turkey, hog, and elk.
To Ponder While You Wander
“The number of large flexible loads interconnecting to ERCOT is increasing. Unlike other large loads, these consumers can be turned on or off within seconds of receiving an instruction to do so. There is a significant risk to the ERCOT region if large loads, almost instantly, have the ability to go on or off the grid. To limit the reliability risk created by these large flexible loads, the PUCT recommends that ERCOT have the authority to require large flexible loads register and follow standards on allowable behaviors," - Texas Public Utilities Commission Draft Report