China is kicking out more than half the world’s bitcoin miners – and a whole lot of them could be headed to Texas

Published

4 years ago

June 19, 2021

admin

Technicians make repairs to bitcoin mining machines at a mining facility operated by Bitmain in Ordos, Inner Mongolia, China, on Friday, Aug. 11, 2017.

Qilai Shen | Bloomberg | Getty Images

China has long been home to more than half the world’s bitcoin miners, but now, Beijing wants them out ASAP.

In May, the government called for a severe crackdown on bitcoin mining and trading, setting off what’s being dubbed in crypto circles as “the great mining migration.” This exodus is underway now, and it could be a game changer for Texas.

Mining is the energy-intensive process which both creates new coins and maintains a log of all transactions of existing digital tokens.

Despite a lack of reserves that caused days-long blackouts last winter, Texas often has some of the world’s lowest energy prices, and its share of renewables is growing over time, with 20% of its power coming from wind as of 2019. It has a deregulated power grid that lets customers choose between power providers, and crucially, its political leaders are very pro-crypto – dream conditions for a miner looking for a kind welcome and cheap energy sources.

“You are going to see a dramatic shift over the next few months,” said Brandon Arvanaghi, previously a security engineer at crypto exchange Gemini. “We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible.”

China’s mining dominance

2021 data for the global distribution of mining power is not yet available, but past estimates have shown that 65% to 75% of the world’s bitcoin mining happened in China – mostly in four Chinese provinces: Xinjiang, Inner Mongolia, Sichuan, and Yunnan. Sichuan and Yunnan’s hydropower make them renewable energy meccas, while Xinjiang and Inner Mongolia are home to many of China’s coal plants.

The drawdown in miners has already begun in Inner Mongolia. After failing to meet Beijing’s climate targets, province leaders decided to give bitcoin miners two months to clear out, explicitly blaming its energy misses on crypto mines.

Castle Island Ventures founding partner Nic Carter says that while it’s not totally clear how China will handle next steps, it a phased rollout is likely. “It seems like we’re going from policy statement to actual implementation in relatively short order,” he said.

The way this exodus is measured is by looking at hashrate, an industry term used to describe the computing power of all miners in the bitcoin network.

“Given the drop in hashrate, it appears likely that installations are being turned off throughout the country,” continued Carter, who also thinks that probably 50 to 60% of bitcoin’s entire hashrate will ultimately leave China.

Although China’s announcement hasn’t been cemented in policy, that isn’t stopping miners like Alejandro De La Torre from cutting their losses and making an exit.

“We do not want to face every single year, some sort of new ban coming in China,” said De La Torre, vice president of Hong Kong-headquartered mining pool, Poolin. “So we’re trying to diversify our global mining hashrate, and that’s why we are moving to the United States and to Canada.”

One of bitcoin’s greatest features is that it is totally location agnostic. Miners only require an internet connection, unlike other industries that must be relatively close to their end users.

“The cool thing about bitcoin that is under appreciated by a lot of the naysayers is that it’s a portable market; you can bring it right to the source of energy,” explained Steve Barbour, founder of Upstream Data, a company that manufactures and supplies portable mining solutions for oil and gas facilities.

That said, the exodus won’t be instantaneous, in part, because it will take miners some time to either move their machines out of China or liquidate their assets and set up shop elsewhere.

Where they’re going

Because miners at scale compete in a low-margin industry, where their only variable cost is typically energy, they are incentivized to migrate to the world’s cheapest sources of power.

“Every Western mining host I know has had their phones ringing off the hook,” said Carter. “Chinese miners or miners that were domiciled in China are looking to Central Asia, Eastern Europe, the U.S., and Northern Europe.”

One likely destination is China’s next-door neighbor, Kazakhstan. The country’s coal mines provide a cheap and abundant energy supply. It also helps that Kazakhstan has a more lax attitude to building, which bodes well for miners who need to construct physical installations in a short period of time.

Didar Bekbauov runs Xive, a company that provides hosting services to international miners. Xive also sells the specialized equipment needed for mining.

Bekbauov says that he’s stopped counting the number of Chinese miners who have called him to ask about relocation options, ranging from operations with 15 rigs to thousands.

“One miner told us that only government electricity plants have restricted mining and private ones will continue to service miners,” Bekbauov told CNBC.

“But most of the electricity is generated by government power plants, so miners will have to move. That makes them uncertain and desperate to find other locations,” he said.

Whether Kazakhstan is a destination or simply a stopover on a longer migration west remains to be seen.

Arvanaghi is bullish on North America and thinks the hashrate there will grow over the next few months.

“Texas not only has the cheapest electricity in the U.S. but some of the cheapest in the globe,” he said. “It’s also very easy to start up a mining company…if you have $30 million, $40 million, you can be a premier miner in the United States.”

Wyoming has also trended toward being pro-bitcoin and could be another mining destination, according to Arvanaghi.

There are, however, a few major limitations to the U.S. becoming a global mining destination.

For one, the lead time to build the actual physical infrastructure necessary to host miners is likely six to nine months, Carter told CNBC. “The U.S. probably can’t be as nimble as other countries in terms of onshoring these stray miners,” he said.

The move logistics may also prove difficult. There is a shipping container shortage, thanks to the tailwinds of the Covid pandemic.

But perhaps the biggest question is the reliability of the Texas power grid. A storm that devastated large swaths of the state in 2020 has reignited a debate over whether Texas should winter-proof its systems, a potentially costly project that might affect taxes or other fees for those looking to tap into the state’s power grid. More recently, ERCOT, the organization that operates Texas’ grid, asked consumers to conserve energy amid what officials called an unusual number of “forced generation outages” and an upcoming heat wave.

Answering the Musk critique

Tesla CEO Elon Musk has bashed bitcoin mining, claiming that it is bad for the environment. It’s not a new criticism.

For years, skeptics have maligned the world’s most popular digital token for polluting the planet, while supporters have extolled the virtues of bitcoin and its role in accelerating the rise of renewable energy.

It is unclear whether the China mining exodus will make or break the case for bitcoin enthusiasts in the debate around the token’s carbon footprint. The dominant narrative, to date, has been that much of the world’s bitcoin is mined with Chinese goal.

“From a narrative perspective, it’s definitely an improvement,” said Carter. “But China also has the most abundant stranded hydro resources in the world.”

The country offers significant energy vectors from wind, solar, and especially hydropower in the south. Xinjiang’s grid, for example, is 35% powered by wind and solar energy inputs.

If all the miners do end up leaving China, it will mean less fossil fuel-powered mining, but it will also mean that the network’s share of renewable energy-powered mining will drop. This is why the question of where these migrant miners end up could prove critical to bitcoin’s future. “It’s the biggest story of the year for bitcoin,” said Carter.

De La Torre says they’re looking to expand operations using green energy, a trend that is already years in the making. He says that hydro plants are generally cheaper than fossil fuels in most parts of the world.

“Mining is price sensitive, so as to seek out the lowest cost power and the lowest cost power tends to be renewable because if you’re burning fossil fuels…it has extraction, refinement, and transport costs,” explained Blockstream CEO Adam Back.

Lazard

Each year, investment bank Lazard releases a breakdown of energy costs by source. Its 2020 report shows that many of the most common renewable energy sources are either equal to or less expensive than conventional energy sources like coal and gas. And the cost of renewable power keeps going down.

But there are limitations to running crypto mines purely on renewable energy.

Though solar and wind are now the world’s least expensive energy sources, both power supplies face limitations at scale, so there is concern over the viability of miners turning exclusively to wind or solar energy.

Next six months

For the time being, there isn’t that much mining capacity worldwide that is ready to absorb the Chinese miner diaspora. While they scramble to find a new home, we could see hashrate go offline – and stay offline.

In practice, that would mean all the remaining miners are more profitable for a period of time.

Having more geographic dispersion would even out the global balance of power, and it would also reduce the ability of any one sovereign nation to co-opt or control the network.

We may also see special crypto economic zones pop up in the next few months.

“You will see jurisdictions adopting a very favorable stance and creating the equivalent of special zones to encourage miners to host locally,” said Carter. “We’re seeing it at the state level here. You’re also gonna see it at the country level, you might even see subsidized electricity for mining.”

Environment

First month on record: fossil fuels drop below 50% of US power mix

Published

2 hours ago

April 4, 2025

admin

First month on record: fossil fuels drop below 50% of US power mix

Fossil fuels just hit a record low in the US electricity mix last month, while solar and wind soared to all-time highs, according to fresh data from global energy think tank Ember.

In March 2025, fossil fuels accounted for less than 50% – 49.2% – of electricity generated for the first month on record. This beats the previous monthly record low of 51% set in April 2024.

“This clearly demonstrates the growing role of wind and solar in the US energy system,” said Nicolas Fulghum, senior analyst at global energy think tank Ember. “This is a first signal that the US is approaching a tipping point where clean power takes the lead over fossil generation, and where the importance of coal and gas inevitably starts to fade.”

What this means is that clean energy generated more than half – 50.8% – of US electricity for the first month on record. The record was driven by a surge in wind and solar power, which hit a new high of 24.4% of US electricity in March 2025.

Advertisement – scroll for more content

In March 2025, US solar increased an astonishing 37% (+8.3 TWh) compared to March 2024. Wind increased by 12% (+5.7 TWh). Together, wind and solar reached an all-time high, generating 83 TWh of US electricity, 11% higher than the previous record of 75 TWh set in April 2024. Fossil fuel generation fell by 2.5% (-4.3 TWh) compared to March 2024.

The milestone is the result of a long-term decline of fossil generation in the US power sector, with wind and solar growing substantially over the last decade. In March 2015, fossil generation still provided 65% of US electricity generation. Wind and solar generation stood at just 5.7%. Since then, the share of wind and solar power has more than quadrupled.

“Wind and solar power are pushing fossil fuels out of the mix,” said Fulghum. “The reality on the ground is not one of a return to fossil fuels in the US, it’s the continued growth of solar and wind power that will be the dominant driver of electricity generation growth in the US.”

Solar power is set to account for more than half of new generating capacity installed in the US in 2025, with more than a third of new solar panels going to Texas. Solar adoption has exploded in just a decade. In March 2015, solar power accounted for just 1% of US electricity generation. By March 2025, it’s grown to 9.2%.

Last month, Ember published the report “US Electricity 2025,” which covered changes and trends in the US power sector in 2024. Solar was the fastest and largest growing source of electricity in the US in 2024. Wind and solar combined rose to a record 17% of the US electricity mix in 2024, overtaking coal for the first time, which accounted for 15%.

To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*

FTC: We use income earning auto affiliate links. More.

Environment

All the EVs (and PHEVs) you can buy with 0% financing in April 2025

Published

3 hours ago

April 4, 2025

admin

All the EVs (and PHEVs) you can buy with 0% financing in April 2025

Ford Mustang Mach-E gets price cut PLUS zero % interest

Lease deals get all the hype, but most people still want to own the car after they’re done making all those payments on it. If that sounds like you, and you’ve been waiting for the interest rates on auto loans to drop, you’re in luck: there are a bunch of great plug-in cars you can buy with 0% financing and at pre-tariff prices this April!

As I was putting this list together, I realized there were plenty of ways for me to present this information. “Best EVs ..?” Too opinion based. “Cheapest EVs ..?” Too much research. “Best deal ..?” That’s usually subjective, but as automakers and dealers rush to raise prices in anticipation of Trump’s tariffs, two brands – Ford and Nissan – stand apart.

In the end, I went with alphabetical order, by make, so you’ll find out more about Ford and Nissan’s approach to the new market reality when you get to them. And, as for which deals are new this month? You’re just gonna have to read the article. Enjoy!

Acura ZDX

Manufactured in Spring Hill, Tennessee, the 2024 Acura ZDX uses a GM Ultium battery and drive motors, but the styling, interior, and infotainment software are all Honda. That means you’ll get a solidly-built EV with GM levels of parts support and Honda levels of fit, finish, and quality control. All that plus Apple CarPlay and (through April 30th) 0% financing for up to 72 months makes the ZDX one the best sporty crossover values in the business.

Advertisement – scroll for more content

Chevy Blazer, Equinox EVs

GM-EV-rivals — 2025 Chevy Equinox; via GM.

Both the Chevy Blazer EV and Equinox EV are manufactured at GM’s Ramos Arizpe plant in Coahuila, Mexico, and each offers their own takes on the five-passenger family SUV. Despite any incoming tariffs, the crossovers you’ll find on dealer lots today still represent a solid value, with the cost of base model Equinox LT FWD models with 319 miles of EPA-rated range dropping to just $27,500 after you apply the $7,500 Federal tax credit (for now, still a thing).

Chrysler Pacifica PHEV

2023 Chrysler Pacific (it’s the same); via Stellantis.

When the plug-in hybrid version of the Chrysler Pacifica minivan first went on sale all the way back in 2016, it seemed to imply that the old Chrysler Corporation was going to race ahead of the other Big Three US carmakers.

That didn’t happen, but the Pacifica is still the king of cupholders, while the van’s stow n’ go seating, and all the other practical, clever details that add up to remind you Chrysler invented these things – and through April 30th, you can get 0% financing for up to 72 months on 2025 MY examples of this made-in-Canada plug-in hybrid and cover up to 32 miles of your daily driving needs on the clean, pure power of electrons.

Ford Mustang Mach-E

As I mentioned at the top of the article, both Ford and Nissan have taken steps to push back against the Trump tariffs – and in Ford’s case, that means big discounts, employee pricing for all, and free chargers for EV buyers.

In addition to employee pricing, 2024 Mustang Mach-Es continue to offer 0% APR financing for up to 72 months. That offer appears to be stackable with $2,500 in bonus cash, too, and Tesla owners and lessees can also score $1,000 in conquest cash for up to $3,500 off.

GMC HUMMER EV

The biggest of the Ultium-based EVs, these Hamtramck, Michigan-built machines are seriously impressive EVs, with shockingly quick acceleration and on-road handling that seems to defy the laws of physics once you understand that these are, essentially, medium-duty trucks. If you’re a fan of heavy metal (and plastic), you’ll definitely want to stop by your local GMC dealer and give the rugged GMC HUMMER EV a test drive.

Honda Prologue

Honda-$99-Prologue-offer — Honda Prologue; via Honda.

Manufactured alongside its GM siblings at the Ramos Arizpe plant in Coahuila, Mexico, the hot-selling Honda Prologue pairs GM’s excellent Ultium platform with Honda sensibilities and Apple CarPlay to create a winning combination.

If you’ve been holding off, we’ve got good news: there’s still a few remaining 2024 models in dealer inventory out there. To make room for the 2025 models, Honda is offering 0% APR for up to 72 months on the remaining 2024s.

Click here to find a 0% interest (72 mo.) deal on a 2024 Prologue near you.

Hyundai IONIQ 6

Hyundai-cheaper-EVs — 2024 Hyundai IONIQ 6 Limited; via Hyundai.

The ultra-efficient Hyundai IONIQ 6 is one of the most compelling Model 3 competitors out there – but that could change if the Korean-built sedan gets hit with heavy tariffs. To make sure that doesn’t happen, Hyundai is investing tens of billions of dollars into a US manufacturing base, creating new American jobs and ensuring (kinda) that it can continue to deliver real value to its customers.

The fast-charging IONIQ 6 offers up to 342 miles of range on its most efficient version, while even the shortest range models offer 220 miles of range. Through April 30th, Hyundai is offering a rare 0% interest deal on remaining 2024 examples of its slippery sedan for up to 48 months.

All the Kia EVs

Kia has something for just about everyone in its EV range, from the fun, compact, and underrated Niro EV to the practical three-row EV9 to the supercar-baiting performance of the Kia EV6 – a car that made its global debut on a drag strip running alongside a Lamborghini, a Porsche, and an AMG Mercedes GT.

Through April 30th, you can get 0% interest on just about every new EV you’ll find on your Kia dealer’s lot (minus 2025 Kia EV6 models). Click the links below to find yours.

Mitsubishi Outlander PHEV

One of the first three-row plugin cars to hit the market, Mitsubishi’s Outlander PHEV has always presented a strong value proposition with up to 38 miles of electric range from its 20 kWh li-ion battery and room for seven (in a pinch), making it a great “lily pad” vehicle for suburban families who want to drive electric but still worry about being able to find a charging station when they need one.

That might change when the tariffs take full effect, however – so if you’re looking for an affordable 7-passenger plug-in with a great safety rating at a reasonably affordable price, act fast.

Nissan Ariya

I’ve already said that the Nissan Ariya didn’t get a fair shake. If you click that link, you’ll read about a car that offers solid driving dynamics, innovative interior design, and all the practicality that makes five-passenger crossovers the must-haves they’ve become for most families. Now, Nissan is slashing prices across the line as their competitors are raising theirs, making the case for the Ariya even stronger than before.

With great discounts available at participating dealers, Supercharger access, and 0% interest from Nissan for up to 72 months on both 2024 and 25 MY Ariya EVs.

Toyota bZ4X

Toyota-$10,000-discount-bZ4X — Toyota bZ4X; via Toyota.

Built in Toyota City, Japan, the bZ4X EV is a capable, dependable crossover with room for five and Toyota’s reputation for reliability and longevity to boot. With 0% financing and big discounts on both 2024 and 2025 models, the bZ4X might be the best deal on your local Toyota dealer’s lot.

Volkswagen ID.4

One of the most popular legacy EVs, the ID.4 offers Volkswagen build quality and (for 2024) a Chat-GPT enabled interface. To keep ID.4 sales rolling, VW dealers are getting aggressive with discounts, making this fast-charging, 291 mile EPA-rated range, 5-star safety rated EV a value proposition that’s tough to beat.

This month, get a Volkswagen ID.4 fresh from the company’s Chattanooga, Tennessee assembly plant with 0% financing for up to 72 months plus a $5,000 customer cash bonus on remaining 2024 models to stack with it.

Disclaimer: the vehicle models and financing deals above were sourced from CarsDirect, CarEdge, CarFax, USNews, and (where mentioned) the OEM websites – and were current as of 03APR2025. These deals may not be available in every market, with every discount, or for every buyer (the standard “with approved credit” fine print should be considered implied). Check with your local dealer(s) for more information.

FTC: We use income earning auto affiliate links. More.

Environment

Why OPEC+ is accelerating oil production as prices are tanking and tariffs hammer markets

Published

7 hours ago

April 4, 2025

admin

Why OPEC+ is accelerating oil production as prices are tanking and tariffs hammer markets

The Phillips 66 Company’s Los Angeles Refinery in California.

Bing Guan | Reuters

The oil price outlook is being hit with more bearish forecasts on the back of U.S. President Donald Trump’s sweeping and market-hammering tariff announcements. Businesses and investors worry that a trade war and lower global growth lies ahead.

Goldman Sachs on Thursday reduced its December 2025 forecasts for global and U.S. benchmarks Brent crude and WTI by $5 to $66 and $62 a barrel, respectively, “because the two key downside risks we have flagged are realizing, namely tariff escalation and somewhat higher OPEC+ supply.”

The bank also cut its forecasts for the oil benchmarks in 2025 and 2026, adding that “we no longer forecast a price range, because price volatility is likely to stay elevated on higher recession risk.” Analysts at S&P Global Market Intelligence predict that in a worst-case scenario, global oil demand growth could be slashed by 500,000 barrels per day.

OPEC is still holding a lot of the cards, energy analyst says

JPMorgan, for its part, raised its recession odds for the global economy to 60% for this year, up from a previous forecast of 40%.

Markets were therefore stunned when OPEC, which produces about 40% of the world’s crude oil — along with its non-OPEC allies that together comprise OPEC+ — chose not only to go ahead with its previously held plans to increase oil production, but also to nearly triple the expected increase figure.

Eight key OPEC+ producers on Thursday agreed to raise combined crude oil output by 411,000 barrels per day, speeding up the pace of their scheduled hikes and pushing down oil prices. The group — Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman — was widely expected to implement an increase of just under 140,000 barrels per day next month.

The news pushed oil prices 6% lower.

OPEC+ bullishness and appeasing Trump

Several factors underpin the oil-producing alliance’s decision. One is that the group is bullish on oil demand later in the year, putting it firmly in the minority as investor outlooks sour and fears of a global slowdown worsen.

The eight OPEC+ members behind the production decision cited “the continuing healthy market fundamentals and the positive market outlook” in their statement Thursday, saying that “this measure will provide an opportunity for the participating countries to accelerate their compensation.”

RBC’s Helima Croft on eight key OPEC+ producers raising combined crude oil output

The statement added that “the gradual increases may be paused or reversed subject to evolving market conditions.”

Another likely reason for the group’s move has to do with another T-word: the man in the White House, who during his first term in office and from the very start of his second, has loudly demanded that the oil producer group pump more crude to help bring down prices for Americans.

“First of all, this is partly about appeasing Trump,” Saul Kavonic, head of energy research at MST Marquee, told CNBC’s Dan Murphy on Friday.

“Trump will be putting pressure on OPEC to reduce oil prices, which reduces global energy prices, to help offset the inflationary impact of his tariffs.”

OPEC officials have denied that the move was made to appease Trump.

Compliance and market share

Meanwhile, as compliance is a major issue for OPEC+ — with countries overproducing crude beyond their quotas, complicating the group’s efforts to control how much supply it allows into the market — the move could be a way to enforce that, according to Helima Croft, head of global commodity strategy and MENA research at RBC Capital Markets.

“We think a desire by the OPEC leadership to send a warning signal to Kazakhstan, Iraq, and even Russia about the cost of continued overproduction underlies the decision.”

Helima Croft

head of global commodity strategy and MENA research at RBC Capital Markets

“We think a desire by the OPEC leadership to send a warning signal to Kazakhstan, Iraq, and even Russia about the cost of continued overproduction underlies the decision,” Croft wrote in a note published Thursday. She referenced the March 2020 oil price war, when Saudi Arabia flooded the market with supply to tank oil prices and forced Russia back into compliance after Moscow initially refused to curb production to help the alliance stabilize prices. The price war caused Brent crude prices to go as low as $15 a barrel.

The production increases are also “an example of OPEC increasing their market share,” Kavonic said, adding that it “ultimately does come at the expense of the United States [shale] patch,” which U.S. producers likely will not be too thrilled about.

What happens next?

OPEC+ appears confident about the market turning a corner in the coming months on the assumption that oil demand will increase in the summer and the tariff wars will be resolved in the coming months, said Nader Itayim, editorial manager at Argus Media.

“These countries are largely comfortable with the $70, $75 per barrel band,” Itayim said.

We'll be lucky to get one rate cut from the Fed in 2025, Allianz's Mohamed El-Erian says

What comes next depends on the trajectory of the tariffs and a potential trade war. Oil dropping into the $60 range could force pauses or even a reversal in OPEC+ production increase plans, analysts say – although that is likely to be met with resistance from countries like Iraq and Kazakhstan that have long been itching to increase their oil production for their own revenues.

Whatever happens, the group maintains the flexibility to adapt its plans month by month, Itayim noted.

“If things don’t quite go the way they imagine, all it does take, really, is a phone call.”