Demand response (mining curtailment)

Mining machines can be turned off in seconds and restarted without damage or lost production lines, which makes miners unusually flexible electricity customers. Grid operators and utilities pay large consumers to reduce demand when the system is under strain, and miners sign up for these programmes or simply sell back power they bought at a fixed price when spot prices soar.

Texas became the best-known example. Miners connected to the ERCOT grid curtail during summer heat waves and winter storms, and some earn more from power credits in those weeks than from mining itself; one large miner reported tens of millions of dollars in credits in August 2023. Supporters argue this flexibility helps grids absorb more wind and solar power.

Critics counter that miners are paid for not using power they would not otherwise need on the grid, and that their presence raises demand the rest of the year. Curtailment also lowers network hashrate temporarily, slowing block times until difficulty adjusts. The economics depend heavily on local market rules, which can change.