Texas has emerged as the leading state for Bitcoin (BTC) mining in the United States, based on data from one of the world’s largest mining pools. According to Foundry’s estimates, Texas now hosts approximately 28.5% of the Bitcoin hashrate in the U.S., surpassing all other states by a significant margin.

Just a year ago, Texas accounted for approximately 8.4% of U.S. mining power. However, substantial changes in 2022 have solidified its position as the dominant player, leaving previous leaders trailing behind. New York and Georgia, which previously held 9.5% and 34.2% of the mining power, respectively, have now seen their shares decrease to 8.8% and 9.6%.

The decline in Georgia’s mining power can be attributed in part to the absence of a major miner from Foundry’s 2021 sample. However, industry experts also point to incentives that are luring miners to other regions. New York’s growth has been hindered by policies discouraging the use of fossil fuel-powered mining machines.

Miners have attributed Texas’s surge in mining activity to incentives provided by regulators and grid operators. By reducing power consumption during periods of high demand and receiving compensation, the cost of mining in Texas is considerably lower than in other parts of the country.

Companies like Riot Blockchain have acknowledged these incentives as the driving force behind significant expansion plans in the Lone Star State. Cipher Mining, a rival company, also acquired over 11,000 new machines for its Texas facility earlier this year.