Bernstein: Texas moratorium unlikely to hit Bitcoin miners
Bernstein analysts say Abbott’s moratorium and ERCOT audit are unlikely to affect Bitcoin miners; most Texas operations hold contracts for approved power capacity.
On Monday, Texas Governor Greg Abbott ordered a temporary moratorium on new data-center approvals and directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to audit all data-center projects seeking grid connections. The directive did not specify how long the audit will take.
Bernstein analysts told clients on Tuesday that most Bitcoin miners operating in Texas have contracts for approved electric capacity, so the moratorium and audit are unlikely to cause immediate disruption.
The research team led by Gautam Chhugani wrote: “However, we believe, this audit throttles speculative data center pipeline and makes genuine sites with development history more valuable.” The note added: “Bitcoin mining sites are favorably placed with the longest gestation, self-funding infra and local community management.”
Bernstein identified Cipher Digital, Core Scientific and CleanSpark as miners that could face public opposition or scrutiny if they seek to expand or convert pipeline projects into grid-connected capacity. The firm highlighted IREN and Riot Platforms as examples of miners with fully ERCOT-approved capacity.
Cipher shares fell more than 7% in premarket trading on Tuesday after the company reported second-quarter results showing a loss of $0.65 per diluted share, widening from a loss of $0.12 a year earlier.
The audit requires ERCOT and the state utility commission to review pending data-center connection requests and assess potential impacts on the grid. Analysts wrote that scrutiny could limit speculative projects that lack development history or secured power contracts, and that projects with approved megawatts and formal grid agreements may gain value if approvals are constrained.
Rapid growth in data centers and cryptocurrency mining in Texas is linked to abundant power generation and business-friendly policies. The expansion has raised concerns about land use, water and strain on local power systems.
Bernstein noted the long-term effects will depend on how long the review lasts and whether regulators set new thresholds or conditions for connecting large loads to the grid.
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