In the vast, sunbaked expanse of West Texas, where oil derricks once dominated the skyline and wind turbines now spin endlessly across the plains, a new kind of energy consumer has arrived: Bitcoin miners. These digital gold diggers aren’t wielding picks and shovels—they’re deploying thousands of high-powered computers, housed in repurposed shipping containers, to mine cryptocurrency in one of the most energy-rich regions in the United States.
Jason Wilson, Cormint’s site manager, greets me at a ranch gate off Interstate 10 in Pecos County, dressed in work boots, cargo pants, and a camouflage T-shirt. He steps out of a Prius—a slight irony given his rugged appearance—and leads me down a dusty road. For miles, the landscape appears unchanged: open rangeland, grazing cattle, and endless skies. Then, rising from the heat haze, the industrial silhouette of an electrical substation comes into view.
Behind a chain-link fence lies Cormint, a cryptocurrency mining data center. Beyond the prefab office building, rows of shipping containers hum with the relentless whir of computer servers—each about the size of a Nintendo GameCube—working to solve complex cryptographic puzzles. The first to solve earns Bitcoin. On a cool summer day in the 80s, temperatures near the containers soar another 20 degrees due to the immense heat generated by the machines.
The Rise of Texas as a Bitcoin Mining Powerhouse
Since China banned cryptocurrency mining in 2021, Texas has emerged as the Bitcoin mining capital of the world. With abundant energy resources, deregulated electricity markets, and local officials eager to attract industrial investment, the state has become a magnet for mining operations. Pecos County—home to just 15,100 people—now hosts three major data centers, including Cormint.
👉 Discover how decentralized finance is reshaping global energy consumption.
Bitcoin mining is notoriously power-intensive. Cormint alone consumes around 75 megawatts per hour—enough to power the entire county. Each Bitcoin mined in 2023 cost nearly **$9,200 in electricity**, totaling a $4.8 million energy bill. Despite this, operators argue they’re not draining the grid but rather stabilizing it by monetizing excess renewable energy.
Stranded Energy and Economic Opportunity
West Texas produces a surplus of wind and solar power—so much that at times, renewable farms offer electricity at negative prices just to keep generating tax credits. Natural gas producers have even paid pipelines to take their gas rather than shut down wells. Bitcoin miners like Cormint step in as “energy buyers of last resort,” soaking up this stranded power.
Jamie McAvity, Cormint’s Houston-born founder and former commodities trader, sees Bitcoin as a tool for financial freedom. “I always sided with the rebels,” he says, referencing Star Wars. “Building something that empowers individuals against centralized systems was attractive.” While Bitcoin has long shed its countercultural roots—Sen. Ted Cruz now owns miners in nearby Iraan—McAvity insists the mission remains disruptive.
Cormint operates on 20 acres with 70 shipping containers housing 50,000 servers. In 2023, it mined 519 Bitcoin—worth $15.1 million at the time. The company plans to double its energy use this year by expanding its infrastructure.
Grid Relief or Hidden Burden?
Proponents argue that Bitcoin mining supports grid stability. Miners can power down during peak demand—like summer heat waves—when electricity prices spike. The Electric Reliability Council of Texas (ERCOT) even pays large consumers to reduce usage, meaning miners can profit by shutting off.
Joshua Rhodes, a research scientist at UT Austin, acknowledges this benefit but warns against overstating it. “When grid conditions are tight, it helps,” he says. “But their existence is part of why conditions are tight.” If Bitcoin prices rise enough, miners may choose to stay online during peak times—competing with households for power and driving up costs.
👉 Learn how blockchain technology is driving innovation in energy markets.
“Just because you do demand response doesn’t make you green,” Rhodes adds. “Oil and gas companies do it too.”
A New Chapter for Pecos County
Pecos County Judge Joe Shuster sees Bitcoin mining as a natural evolution of the region’s energy economy. With 3,500 megawatts of daily production—enough for nearly 875,000 homes—and plans to double that with renewables, he welcomes the industry. “It’s another way to manage energy,” he says.
So far, no blackouts have occurred, and remote locations prevent noise complaints seen elsewhere. The three mining facilities have created 65 local jobs, with hiring agreements prioritizing county residents. “There’s not a big job market out here,” Shuster notes. “Sixty-five jobs matter.”
Still, understanding lags behind employment. Many locals don’t know how mining works—or that it’s happening nearby. Paul Golliher, owner of Pecos County Feed & Supply, admits, “I don’t understand anything about it. I don’t think anybody else does either.” Yet he appreciates the companies’ community sponsorships—rodeos, banquets—calling their presence “a net positive.”
Inside the Mining Operation
At Cormint’s office, young employees monitor real-time data: hashrate, power usage, electricity prices. Chris Terry, a Fort Stockton native and former school district worker, calls his role “generally a net positive.” Ethan Schroeder, a 21-year-old from New Orleans repairing broken miners, jokes Fort Stockton is “the best town in Texas”—though he admits few peers remain after college.
“How’s the dating scene?” I ask.
“I haven’t even tried,” he says with a shrug. For now, there’s Bitcoin to mine.
Frequently Asked Questions
Q: Why is Texas becoming a hub for Bitcoin mining?
A: Texas offers abundant energy—including stranded wind and solar power—low regulation, and favorable electricity pricing. Its deregulated grid allows miners to buy excess power cheaply and shut down during peak demand.
Q: Does Bitcoin mining strain Texas’s power grid?
A: While miners claim they stabilize the grid by consuming surplus energy and reducing load when needed, critics argue their growth contributes to grid stress, especially during extreme weather events.
Q: How much electricity does a Bitcoin mining operation use?
A: Facilities like Cormint use up to 75 megawatts per hour—equivalent to powering an entire county. Industry-wide, crypto mining consumes between 0.6% and 2.3% of U.S. electricity.
Q: Are Bitcoin miners creating jobs in rural Texas?
A: Yes. In Pecos County alone, three mining operations have created 65 local jobs, with hiring agreements favoring residents in an area with limited employment options.
Q: Can Bitcoin mining be sustainable?
A: Some operators use excess renewable energy and participate in demand response programs. However, true sustainability depends on long-term grid impacts and whether miners prioritize profit over public energy needs.
Q: What happens if Bitcoin prices rise dramatically?
A: Higher prices could incentivize miners to stay online during peak demand periods—even when it strains the grid—potentially competing with households for electricity and driving up costs.
The story of Bitcoin mining in West Texas is one of paradox: an industry criticized for its carbon footprint positioning itself as a green solution; tech entrepreneurs operating in oil towns; digital wealth built on physical power. As Pecos County prepares to double its energy output through renewables, one question remains: Can this symbiosis between crypto and clean energy last—or will profit ultimately override promise?
👉 See how next-generation financial platforms are redefining energy economics.