Texas Regulator Fights Attorney General in Crypto Mining Secrecy Battle—Cites Terrorism Risks

Texas utility regulators are digging in their heels—and their legal team—against the state's Attorney General in a high-stakes showdown over crypto mining transparency. The reason? Alleged terrorism concerns that could put sensitive data in the wrong hands.

Behind the legal curtain: The state's top energy watchdog claims revealing mining operations' power consumption details might as well be a roadmap for bad actors. Critics call it a convenient smokescreen—after all, what's more volatile than crypto markets? (Answer: Texas energy grids during a heatwave.)

The real juice: This isn't just about privacy—it's a power play (literally) in the state that's become Bitcoin mining's promised land. Cheap energy, loose regulations, and now... a potential precedent for keeping crypto's carbon footprint calculations under wraps.

One thing's certain: When bureaucrats start citing national security to avoid paperwork, Wall Street bankers aren't the only ones sweating. At least crypto miners can blame their rigs for the heat.

Texas Crypto Mining Boom Grows, but True Scale Remains Opaque

Texas has emerged as one of the largest cryptocurrency mining hubs in the United States, but the full scale of its operations remains opaque.

In 2024, the Electric Reliability Council of Texas (ERCOT) estimated that crypto mining could already account for around 2,600 megawatts of power demand, roughly equal to the city of Austin’s electricity use on a hot summer day.

Additional projects are on the way: utility giant AEP recently disclosed that cryptocurrency mines with a combined load of 5,000 megawatts are planned in its Texas service area alone.

The state’s electricity demand is projected to nearly double by 2030, with Bitcoin mining a major driver.

While lawmakers passed SB 1929 in 2023 to require large-scale crypto mines, those consuming more than 75 megawatts, to register with the PUC by February 2025, the public has yet to see the detailed information those registrations contain.

After the PUC denied the media requests earlier this year, the journalists appealed to Paxton’s office, which in May largely sided with them.

Amusing to watch people explaining why Texas power prices have stayed low, by drawing charts and inferences that don't mention Texas has 3.5 GW of bitcoin mining which Brad Jones (Texas Grid's former CEO) said back in 2022 is what "keeps electricity prices low for all Texans" pic.twitter.com/ra586mBtGO

However, the commission, whose members are appointed by Gov. Greg Abbott, is now seeking a court order to keep the information sealed.

“In the wrong hands, this information could be used by terrorists to plan attacks on Texas’s energy grid and critical infrastructure,” PUC lawyers wrote in a June 27 filing.

Chinese Roots Still Dominate Global Bitcoin Mining

As reported, over half of the world’s Bitcoin mining operations still trace their origins to China, with 55% to 65% of mining linked to Chinese capital, hardware, or expertise, according to Uminers CEO Batyr Hydyrov.

Despite China’s 2021 mining ban, key Chinese players have maintained influence by relocating operations overseas.

Major Chinese manufacturers Bitmain, Canaan, and MicroBT, responsible for 99% of Bitcoin mining hardware, have shifted production to the U.S. to avoid tariffs, helping boost America’s share of Bitcoin’s total hashrate from 4% in 2019 to 38% today.

Hydyrov added that former Chinese miners have often increased capacity after moving abroad, with some expanding by up to 150%, and noted that limited mining still persists within China’s remote regions where enforcement is lax.

Meanwhile, in Iran, officials have raised concerns over the rising strain crypto mining is placing on the nation’s electricity grid, claiming that the activity now contributes to as much as 20% of the country’s energy imbalance.