Bitcoin mining difficulty has increased by approximately 15% to 144.4 trillion, according to data from CoinWarz as of February 20. The adjustment fully recovers the 11% decline recorded earlier this month – the steepest drop since China’s mining ban in 2021. The previous decline followed severe winter storms across the United States in late January. The extreme weather disrupted power grids and forced major mining operations to temporarily shut down equipment. Network hashrate fell to roughly 198 exahashes per second (EH/s) from nearly 400 EH/s before gradually recovering as facilities came back online. How Difficulty Adjustment Restored Balance Bitcoin adjusts mining difficulty every 2,016 blocks, roughly every two weeks to maintain an average block time of ten minutes. When hashrate drops sharply, as it did during the storms, the protocol lowers difficulty to keep block production stable. When computing power returns, difficulty increases again. As American miners resumed operations after weather conditions stabilized, total network hashrate climbed. The algorithm responded with a 15% upward adjustment, restoring mining conditions to levels seen before the disruption. While higher difficulty strengthens network security, it also increases operational pressure on miners. Generating block rewards becomes more computationally expensive, squeezing margins for operators already managing tight energy costs. Miners Turned Downtime Into Revenue Interestingly, forced shutdowns did not necessarily translate into losses. Many US-based miners participate in demand response programs, allowing them to sell contracted electricity back to the grid during peak pricing events. LM Funding America reported redirecting power to the grid during Storm Fern and over the weekend, generating income that exceeded a quarter of its typical quarterly revenue from energy supply and consumption reduction programs. Mining equipment manufacturer Canaan Inc., which operates facilities in the United States, also confirmed that its sites reduced power consumption in coordination with grid partners during storm-related stress periods. US Remains the Center of Global Mining Power Since China’s 2021 mining ban, the United States has become the largest global Bitcoin mining hub. Large-scale operations are concentrated in states such as Texas and Georgia, benefiting from favorable regulations and energy infrastructure. According to data from the Cambridge Centre for Alternative Finance, the United States accounts for more than one-third of global Bitcoin hashrate. The January storm highlighted both vulnerability and adaptability. Geographic concentration means extreme weather can temporarily disrupt global mining output. Yet the rapid recovery to 144.4 trillion difficulty demonstrates how quickly the network can stabilize once conditions normalize. The episode underscores a broader structural dynamic: Bitcoin mining has become deeply intertwined with regional energy systems. While that creates exposure to local disruptions, it also positions miners as flexible energy participants capable of balancing grid demand during crises.
