US Senator Ted Cruz Starts Bitcoin Mining in Texas with Three New ASIC Machines
US Senator Ted Cruz Launches Bitcoin Mining Operations in Texas, Highlighting State’s Crypto-Friendly Environment.
Key Takeaways:
- US Senator Ted Cruz has started Bitcoin mining operations in the Western Texas town of Iraan.
- The Pro-crypto Senator purchased three ASIC Bitcoin miners, reinforcing his long-time support for the digital asset.
- Texas is an ideal location for Bitcoin mining due to its business-friendly laws and access to affordable energy sources (wind, solar, and natural gas).
US Senator Ted Cruz, a crypto advocate, announced on May 31 that he's started Bitcoin mining in Iraan, Texas, by purchasing three ASIC machines. Cruz shared this achievement on X, stating, “I’m proud to join the ranks of Texas Bitcoin Miners,” accompanied by a photo of his mining setup.
In response, Fred Thiel, the CEO of Marathon Digital, a large-scale mining facility in the US, applauded Cruz's initiative, welcomed him to the Bitcoin mining community, and thanked him for helping to make the Bitcoin network safer.
Bitcoin mining is the creation of new Bitcoins by using computational processes to verify and add new transactions to the blockchain. BTC miners compete to solve complex mathematical problems to earn the right to add a “block” of transactions to the blockchain. In exchange for the effort, miners earn a newly minted Bitcoin and the associated transaction fees.
To optimize the process, many miners use ASIC (Application-Specific Integrated Circuit) machines, which offer higher efficiency and performance. These devices make mining more profitable and reduce energy consumption.
How Will This Impact Texas' Growing Crypto Hub?
Texas has become a major hub for cryptocurrency mining due to its abundant renewable energy sources, particularly wind and solar power. Additionally, the state's favorable regulations and low electricity costs attract Bitcoin miners.
Consequently, Bitcoin mining has boomed in smaller towns like Iraan, spreading economic activity beyond major cities.
As mining operations grow, they create jobs, attract investments in energy infrastructure, and generate tax revenue for public services and development projects, strengthening the state’s economic health.
Meanwhile, Cruz is highly regarded in the Bitcoin community for his consistent advocacy for the asset class in the US Senate, particularly his support for Bitcoin mining.
In an interview with Forbes, Cruz discussed Bitcoin's growing role in the Texas economy.
Moreover, he noted that Texans love freedom, a sentiment shared by digital asset enthusiasts worldwide. Cruz expressed his bullish stance on Bitcoin, emphasizing that its decentralized nature improves freedom by being uncontrollable.
Recall that in 2021, Cruz opposed a crypto tax proposal in the Senate’s infrastructure bill. Specifically, the bill aimed to raise about $28 billion in new tax revenue over a decade. He also introduced a resolution for merchants and vendors on Capitol Hill in Washington, D.C., to accept cryptocurrency payments.
As Bitcoin mining continues to gain traction in the US, the asset class itself is becoming more popular among politicians. Cruz is not a lone ranger in this regard. Many other senators have purchased Bitcoin and shared their investments publicly.
Two US Senators, Pat Toomey of Pennsylvania and Cynthia Lummis of Wyoming, have invested in Bitcoin. Toomey has invested in Grayscale's Bitcoin ETF, while Lummis owns a small Bitcoin portfolio.
Related: Bitcoin Mining Firms Are Betting Big on AI for Massive Returns.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
