David Naylor’s knowledge of cryptocurrency was limited, to say the least, when Bitcoin miners started approaching him last year about buying power from the utility he runs across a 16-county stretch of rural Texas.
“I was writing it down, B-i-t-c-o-i-n,” said Naylor, chief executive officer of Rayburn Country Electric Cooperative Inc., which provides power to about 229,000 customers — mostly small towns and homes — north and east of Dallas.
Naylor has had to get up to speed quickly. He’s received multiple proposals to build Bitcoin mines, with rows of electricity-guzzling computers that solve mathematical problems to create digital coins, on what’s now ranch land. Two of the mines would each require as much as $20 million to fortify power lines and avert blackouts. Each would consume enough electricity to power as many as 60,000 Texas homes. Utilities like Rayburn have to provide service to miners if it’s technically feasible to do so, but upgrades to the grid threaten to drive up bills for consumers already shouldering price shocks for almost everything.
