Texas electric grid moratorium won’t have big impact on BTC miners: Bernstein

Bitcoin miners with operations in Texas are not expected to be impacted by a moratorium on approval of data center projects connected to the state’s grid operator ordered by Governor Greg Abbott, Bernstein analysts said Tuesday.Abbott on Monday directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to audit all data centers seeking to connect to the state’s power grid. The duration of the audit was not specified and comes amid increasing public backlash to the pace of data center build-out across the state, The Texas Tribune reported.Bernstein analysts told clients on Tuesday that as most of the Bitcoin (BTC) miners operating in Texas are under contract for approved electric capacity, those operations are unlikely to be impacted by the moratorium.“However, we believe, this audit throttles speculative data center pipeline and makes genuine sites with development history more valuable,” the research team led by Gautam Chhugani said in its note. “Bitcoin mining sites are favorably placed with the longest gestation, self-funding infra and local community management,” they said.They said that the local operations of Cipher Digital (CIFR), Core Scientific (CORZ) and CleanSpark (CLSK) could be the miners most exposed to future public opposition to data center expansion, particularly during ERCOT’s approval process to convert their pipeline assets into grid-connected power capacity.“We believe with increasing political opposition to new data center projects and fresh capacity being throttled by moratoriums/state directives, the approved MWs become more valuable,” they said, highlighting the Texas mining operations of IREN (IREN), which is fully ERCOT grid approved, as are the operations of Riot Platforms (RIOT).CIFR shares were down more than 7% in Tuesday’s premarket trading, according to Yahoo Finance data. The miner reported second-quarter results earlier Tuesday, posting a loss of $0.65 per diluted share, widening from last year’s loss of $0.12 per diluted share. Related: Bitcoin may find bear market bottom in August: 10x ResearchCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.