Texas audit boosts value for established Bitcoin miners

Texas’s audit delays new data center projects but benefits established Bitcoin miners with approved power contracts, increasing the value of existing capacity.

Texas Governor Greg Abbott has initiated an audit of all data center projects seeking to connect to the state’s power grid, resulting in a temporary halt on new approvals. According to Bernstein analysts, this move is unlikely to significantly affect most Bitcoin miners in Texas, as they already possess approved power capacity contracts. The audit primarily targets speculative data center developments, which may delay new projects and increase the scarcity—and thus the value—of existing approved power resources. Established companies like Riot Platforms and IREN are expected to benefit from this situation, while firms with pending expansion plans, such as Cipher Digital, CleanSpark, and Core Scientific, could face obstacles. This review is also seen as a response to public concerns about rapid data center growth and potential power grid strain. Overall, the moratorium is viewed as strengthening the position of established Bitcoin miners in Texas.