US Senator says Bitcoin mining could boost energy grid resilience
Texas Senator Ted Cruz has voiced support for Bitcoin (BTC) mining operations in the U.S., emphasizing its potential to enhance the resiliency of energy grids during times of crisis.
Cruz, a Republican, expressed his bullish stance to Fox News Radio.
Cruz lauded the beneficial influence of Bitcoin mining on the energy industry, specifically focusing on its positive impact in the Lone Star State. But the former GOP presidential candidate’s endorsement comes at a critical time for Texas, which recently experienced its second-hottest summer on record.
Texas subsequently suffered an energy crisis, exacerbated by the sector’s high electricity consumption. Riot Platforms and other large-scale miners like Marathon Digital Holdings were forced to halt operations during past emergencies, affecting their profitability and sparking debates over their role in the state’s energy landscape.
The state’s power grid operator awarded Riot $31.7 million in energy credits to incentivize the Bitcoin miner to reduce its operations.
Cruz, however, maintains that Bitcoin can play a pivotal role in conserving energy resources. He noted that Bitcoin mining machines can swiftly power down in crisis, effectively becoming emergency reservoirs of power.
He explained that Bitcoin miners’ ability to divert energy resources to essential needs, such as hospitals and homes, makes them necessary.
Positive reactions from Bitcoin advocates
Dennis Porter, CEO of the Satoshi Act Fund, a non-profit organization advocating for favorable Bitcoin mining policies, praised Cruz’s stance on Bitcoin.
Porter further highlighted the growing acceptance of Bitcoin among politicians, describing it as a winning issue. He noted that politicians recognize the potential of aligning with Bitcoin to attract new voters and donors while positioning the U.S. as a leader in innovative technologies.
Bitcoin mining stocks surge
Bitcoin mining stocks outperformed the cryptocurrency in the first half of 2023.
Data reveals that the top nine publicly traded BTC mining firms have seen their stock prices surge by over 250% during this period, surpassing Bitcoin’s performance by more than threefold.
It’s no wonder that institutional investors, including Vanguard Group, with over $7.2 trillion in assets under management, have been increasing their exposure to stocks from leading Bitcoin mining companies.
This move suggests a growing institutional interest in Bitcoin despite increasing regulatory scrutiny in crypto.
Cruz’s support for Bitcoin mining to bolster energy grid resilience in Texas also reflects the growing recognition among politicians of cryptocurrency’s potential benefits.
While both advocates and critics are in the political arena, the cryptocurrency industry continues to evolve and gain acceptance, attracting interest from institutional and retailer investors.
