President Trump Plans an “Emergency Power Auction”: What It Could Mean for Bitcoin Miners

President Trump is reportedly set to announce an emergency power auction that would push tech companies to bankroll new power plants.

This initiative aims to ease rising electricity costs. The plan could impact both the cryptocurrency sector and the broader economy in the lead-up to the 2026 midterms.

What Is Trump’s Emergency Power Auction?

According to Bloomberg, Trump, together with governors from several Northeastern US states, is pushing PJM, the country’s largest electricity grid operator, to hold a power auction. The push from the administration and state leaders is expected to take the form of a non-binding “statement of principles.”

Trump’s National Energy Dominance Council, along with the governors of Pennsylvania, Ohio, Virginia, and several other states, would sign the document.

The initiative would see tech firms bid for 15-year contracts to build new power plants. The contracts could underpin the development of roughly $15 billion worth of new power plants, with technology companies covering the costs regardless of whether they use the electricity produced.

PJM supplies power to more than 67 million people across a region stretching from the Mid-Atlantic to the Midwest. The grid operator already hosts the world’s largest concentration of data centers, particularly in northern Virginia.

National Energy Crisis Drives Emergency Intervention

The proposed emergency auction would mark a significant intervention in US energy markets. President Trump has repeatedly highlighted falling oil and gasoline prices since taking office. Yet, electricity costs have moved in the opposite direction as demand continues to rise.

A growing share of that demand is coming from large data centers. The administration and technology companies argue these are essential for economic expansion and for maintaining the US’s competitive edge in artificial intelligence.

However, they are also contributing to higher household electricity costs. In September 2025, the average US retail electricity price rose 7.4% to a record 18.07 cents per kilowatt-hour. Residential electricity prices have increased even more.

According to the National Energy Assistance Directors Association, prices jumped 10.5% between January and August 2025, one of the largest rises in more than ten years.

“The ongoing electricity crisis we are facing due to AI demand will only get worse without intervention,” The Kobeissi Letter wrote.

The Impact on Bitcoin Miners

Additionally, the electricity competition now favors artificial intelligence operations. Bitcoin miners, who once depended on cheap power for a competitive advantage, are being displaced as AI data centers lock in long-term power contracts.

In Texas, large-scale power requests hit 226 gigawatts in 2025. Notably, AI companies now account for about 73% of new applications, overtaking Bitcoin miners. Utilities prefer AI data centers, as they require continuous, reliable power and pay higher rates.

This economic reality has forced major miners, including Galaxy Digital, CleanSpark, and IREN, to adapt. In November, Bitfarms also announced plans to convert its Washington State mining facility to support HPC/AI workloads.

“We believe that the conversion of just our Washington site to GPU-as-a-Service could potentially produce more net operating income than we have ever generated with Bitcoin mining, providing the Company with a strong cashflow foundation that could fund opex, G&A, and debt service and contribute to capex as we wind down our Bitcoin mining business in 2026 and 2027,” Ben Gagnon, Chief Executive Officer of Bitfarms, noted.

Thus, if electricity costs genuinely fall as a result of Trump’s proposed emergency power auction, Bitcoin miners would benefit in straightforward economic terms. Mining profitability is tied to power prices.

Cheaper electricity lowers operating costs and improves margins. Any increase in generation capacity that eases supply constraints could therefore provide indirect relief to miners, particularly in regions experiencing the highest price pressure.

This could also slow the ongoing shift toward AI-focused infrastructure, allowing some mining operations to remain competitive rather than pivoting to HPC workloads. At the same time, the proposal focuses on long-term investment in new power generation. This means its effects would materialize gradually rather than immediately.