The Bitcoin network hashrate, which is the amount of computing power that is pointed at the crypto network, saw a massive decline over the weekend, falling from just over 1,000 exahashes per second on Friday to around 687 exahashes per second on Sunday, according to BitInfoCharts. As a result, blocks of Bitcoin transactions were mined a bit more slowly than the target rate of one every ten minutes.
While the Bitcoin network resets the difficulty associated with finding new blocks roughly every two weeks via the difficulty adjustment algorithm, sharp declines or increases in the network hashrate over shorter periods of time can cause the network to stray from its ten-minute target.
As soon as this recent decline in hashrate and block time happened, the cause of it was obvious to blockchain observers: Winter Storm Fern had caused a large number of bitcoin miners in the U.S. to shut off their equipment for one reason or another. This was easy for anyone to see, as mining pools known to have users with equipment along Fern’s path, such as Foundry USA and Luxor, saw their respective share of the network hashrate massively decline during this time.
Amazing that the network can absorb this much hash flight and still retain an average 12-minute block time. All it takes is one good difficulty adjustment. Incredible system.
And yes, definitely a good time to be a solo! pic.twitter.com/9EQWnYfiJ0
— Bryan Jacoutot (@BryanJacoutot) January 26, 2026
“Luxor mining pool users have collectively curtailed around 50% of their power consumption, a result of high power prices across all major US electricity grids,” Luxor’s Ethan Vera told Gizmodo. “The winter storm has caused power prices to surge and miners are reacting in real-time to remain profitable and, in some cases, benefit by selling power back to the grid.”
The second half of Vera’s comments should be particularly interesting to anyone not overly familiar with the bitcoin mining industry, as Vera is talking about miners getting paid to turn off their equipment. By offering to curtail their use of power and sell it back to the grid during times of increased demand—such as when everyone is staying at home and cranking up the heat during a winter storm—miners can help balance supply and demand for electricity, which is critical for the health of the grid as a whole.
For example, the Electric Reliability Council of Texas (ERCOT), which operates the electric grid in the Lone Star State, has publicly discussed the benefits of bitcoin mining for grid management multiple times. “I would like to see all [bitcoin mining] become controllable load resources,” ERCOT COO Woody Rickerson told the Texas Senate in 2024. “From a reliability standpoint, that would be really advantageous.”
Bitcoin mining is a unique form of electrical demand that can simply be turned off at the drop of a hat without second-order negative effects for the business.
This setup has proven useful for ERCOT so far. Winter Storm Uri in February 2021 was a disaster for the electrical grid, with millions of customers experiencing blackouts, but things have improved since curtailment was introduced for bitcoin miners. According to a report in The Washington Post, this new policy proved helpful as early as July 2022, when a heatwave led to 95% of bitcoin mines in the state turning off their equipment to assist in balancing the grid. According to media reports, similar curtailments also occurred in the January 2024 winter storm and another heatwave in August 2023.
That said, increased demand from bitcoin mining operations can also lead to an increase in the cost of electricity for the average Joe if these operations are not adding their own new energy sources to the grid or if proper policies are not implemented at the local or state government level. A 2023 report from energy data research group Wood Mackenzie found that bitcoin mining operations in Texas had increased electricity bills by 4.7% for non-mining customers. Bitcoin miner Riot Platforms has disputed this assertion, claiming that its operations lower electricity prices by providing demand at off-peak hours.
99% of heat in my office HVAC system is powered by hashrate 👇
Wirelessly connected our @canaanio Avalon Q to “Stage 1” of our Venstar T7900 wall thermostat via Home Assistant.
Thermostat “Stage 2” has physical wire to furnace.
Logic:
When heat is called, turn on miner +… pic.twitter.com/jx2qMD8JQv— Tyler Stevens ⚡️🔥 (@tylerkstevens) January 27, 2026
The always-on demand for electricity associated with bitcoin mining is also behind theories that it could improve the economics of renewable energy sources, as a memo from Square (now Block) controversially argued in 2021. Of course, these arguments assume Bitcoin’s energy use is useful at all, which many critics of the crypto network would dispute.
Notably, some hobbyists are also keeping themselves warm this winter by integrating bitcoin mining equipment into their home heating systems. There are now also commercial ventures related to this phenomenon, as startups are using bitcoin mining to offset costs associated with everything from water heaters to heating systems for greenhouses or entire homes.
