How Will The New Texas Governor Impact the State’s Bitcoin Mining?

Source Beincrypto

Riot Platforms sold about 79% of its Bitcoin in three months to pay for AI data centers in Texas. Its stash fell from 11,380 coins in June to 2,418 by September 30.

On Wednesday, Riot signed a $28 billion AI lease in Texas. That came one day after Texans elected a governor who has pledged to halt data center permits.

How Riot Emptied Its Bitcoin Stash in One Quarter

Riot sold 20,264 coins for about $1.5 billion between January and September, its third-quarter results show. Most went to data center construction.

Based on its holdings and the 1,637 coins it mined, Riot sold roughly 10,600 in the third quarter alone.

Riot Platforms BTC Holdings. Source: Bitcoin TreasuriesRiot Platforms BTC Holdings. Source: Bitcoin Treasuries

BeInCrypto asked in September whether Riot would sell 5,821 coins freed by repaying a Coinbase loan. Riot now holds fewer than half that number.

The new lease rents Riot’s whole Corsicana, Texas, campus to an unnamed AI lab. With earlier deals, Riot now has about $38 billion in contracted rent.

Will Hinojosa Kill Texas Data Centers?

Democrat Gina Hinojosa won the Texas governor’s race on Tuesday. She takes office in January.

She has promised to “issue a moratorium on all data center permits until the Legislature can codify regulations,” Texas Monthly reported.

Jefferies estimated that a moratorium could put 13.3 gigawatts of announced Texas data center projects at risk.

Texas has already paused some approvals. In September, outgoing Governor Greg Abbott halted state environmental permits for data centers until a grid audit. Law firm Bracewell expects that audit in mid-December.

Hinojosa’s Plan May Not Block Every Project

Her proposals for lawmakers focus on terms, not bans. They include ending subsidies and requiring proof that household power and water bills won’t rise, her campaign said.

Under the Corsicana lease, the tenant pays the site’s power costs, Riot said. In March, OpenAI and six other tech firms pledged at the White House to “build, bring or buy” their own power.

A governor can direct state agencies, but changing tax breaks needs the Legislature. Riot’s results do not mention the election.

What Riot Shareholders Are Waiting On

RIOT shares rose 13.9% to $15.97 before Wednesday’s open, Yahoo Finance data show.

RIOT Stock Performance. Source: Yahoo FinanceRIOT Stock Performance. Source: Yahoo Finance

The grid audit lands in December and Hinojosa takes office in January. Corsicana’s first 400 megawatts are due in September 2027.

Riot is one of several US miners moving power to AI.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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