The Bitcoin network hashrate, which is the amount of computing power allocated to the crypto network, saw a significant drop over the weekend, dropping from over 1,000 exahashes per second on Friday to 687 exahashes per second on Sunday, according to BitInfoCharts. As a result, Bitcoin transaction blocks are mined much slower than the target rate of one every ten minutes.
While the Bitcoin network resets the difficulty associated with obtaining new blocks approximately every two weeks with a difficulty adjustment algorithm, a sharp decrease or increase in the network’s hashrate in short periods of time can cause the network to deviate from its ten-minute target.
As soon as this latest drop in hashrate and block time occurred, its cause was obvious to blockchain watchers: Winter Storm Fern had caused a large number of bitcoin miners in the US to shut down their machines for one reason or another. This was easy for anyone to see, as mining pools known to have users with machines in Fern’s path, such as Foundry USA and Luxor, saw their respective share of the network’s hashrate drop significantly during this time.
It’s amazing that the network can absorb this much traffic and still maintain an average block time of 12 minutes. All that is required is a good adjustment of the difficulty. An incredible program.
And yes, it’s definitely a good time to be alone! pic.twitter.com/9EQWnYfiJ0
– Bryan Jacoutot (@BryanJacoutot) January 26, 2026
“Luxor mining pool users have collectively reduced their electricity usage by about 50%, which is a result of high electricity prices across the major US power grids,” Luxor’s Ethan Vera told Gizmodo. “The winter storm caused electricity prices to spike and miners responded in real time to stay profitable and, in some cases, profit by selling power back to the grid.”
The second part of Vera’s comments should be very interesting to anyone who is not very familiar with the bitcoin mining industry, as Vera talks about miners being paid to lock their machines. By offering to reduce their energy use and sell it back to the grid during times of peak demand—like when everyone stays home and turns up the heat during a winter storm—miners can help balance the supply and demand of electricity, which is critical to the overall health of the grid.
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 everything [bitcoin mining] become manageable load utilities,” ERCOT COO Woody Rickerson told the Texas Senate in 2024. “From a reliability standpoint, that would be really beneficial.”
Bitcoin mining is a unique form of electricity demand that can simply be turned off at the drop of a hat without the negative effects of a second order of business.
This setup has proven useful for ERCOT so far. Winter Storm Uri in February 2021 was a disaster for the electricity grid, with millions of customers experiencing power outages, but things have improved since the introduction of bitcoin miners’ cuts. According to a report by The Washington Post, this new policy proved useful in early July 2022, when a heatwave led 95% of bitcoin miners in the state to shut down their machines to help balance the grid. According to media reports, similar reductions occur for the winter storm of January 2024 and another heat wave in August 2023.
That means that the increase in demand from bitcoin mining operations can also lead to an increase in electricity costs for the average Joe if these operations do not add their new energy sources to the grid or if appropriate policies are not implemented at the local or state government level. A 2023 report from the energy data research group Wood Mackenzie found that bitcoin mining operations in Texas increased electricity bills by 4.7% for non-mining customers. Bitcoin miner Riot Platforms has disputed this, saying its operation lowers electricity prices by supplying demand during off-peak hours.
99% of the heat in my office HVAC is powered by hashrate 👇
Connect ours wirelessly @cananio Avalon Q to “Stage 1” of our Venstar T7900 wall thermostat by Home Assistant.
The “Stage 2” Thermostat has a portable wire that goes to the furnace.
Meaning:
When heat is called, open the miner +… pic.twitter.com/jx2qMD8JQv— Tyler Stevens ⚡️🔥 (@tylerkstevens) January 27, 2026
The ever-present need for electricity associated with bitcoin mining is also behind the idea that it can boost the economy of renewable energy sources, as a memo from Square (now Block) argued in 2021. Of course, these arguments assume that Bitcoin’s power consumption is useful at all, which many critics of the crypto network would argue against.
Notably, some hobbyists are also keeping warm this winter by integrating bitcoin mining machines into their home heating systems. Now there are also businesses related to this situation, as startups use bitcoin mining to reduce costs associated with everything from water heaters to heating systems for greenhouses or entire homes.
