Shares of major bitcoin mining companies operating in Texas rose Thursday after state regulators approved a new system to connect large electricity users to the grid, easing a key bottleneck for firms shifting toward AI and data center businesses.
Cipher Digital jumped more than 10% to a record close of $30, while Core Scientific and Riot Platforms gained 3% and 2.2%, respectively.
New ERCOT framework targets connection bottlenecks
The Public Utility Commission of Texas approved ERCOT’s “Batch Zero” framework, which restructures how high-load power requests are evaluated. The move replaces a first-come, first-served approach that struggled to handle surging demand.
ERCOT said more than 438,000 megawatts of large-load demand are currently in its queue, with roughly 90% tied to data center projects. That volume far exceeds the state’s historical peak electricity demand.
Under the new system, projects will be reviewed in groups, allowing planners to assess how multiple facilities interact with each other and with existing infrastructure. The goal is to produce a more coordinated view of where transmission upgrades are needed and accelerate timelines for viable projects.
AI transition drives renewed market interest
The regulatory shift directly supports bitcoin miners repurposing their energy-intensive sites into hubs for AI and high-performance computing. Many Texas-based operators have already begun diversifying away from pure cryptocurrency mining.
Cipher Digital has secured major agreements with technology clients, including a 15-year, $5.5 billion lease with Amazon Web Services at its Black Pearl campus and a separate hosting deal backed by Google at Barber Lake.
Core Scientific reported $78 million in colocation revenue in the first quarter, more than double its bitcoin mining income. Riot Platforms generated $33 million from data center operations and expanded its hosting capacity for AMD to 50 megawatts, while continuing construction of its Corsicana site, which could reach 1 gigawatt in capacity.
These developments are reshaping how traders value the sector, with growing emphasis on stable, long-term data center revenue rather than dependence on volatile cryptocurrency prices. The divergence was evident as Cipher’s stock surged despite a broader decline in crypto market capitalization on the same day.
Structured process could accelerate large-scale projects
The batch-based review system is expected to favor companies with mature projects, secured land, and existing power agreements. By evaluating grid impacts collectively, ERCOT aims to reduce delays and provide clearer timelines for large-scale developments tied to AI infrastructure growth.
This shift also improves visibility into infrastructure needs, allowing utilities and developers to align investments more efficiently as demand rises.
Federal regulators step up oversight nationwide
The Texas move comes as federal regulators increase scrutiny of grid capacity nationwide. The Federal Energy Regulatory Commission has ordered six regional operators outside Texas to demonstrate that expanding data center demand will not raise costs for households and businesses or undermine grid reliability.
FERC Chair Swett said the agency will continue monitoring how rapid growth in electricity consumption—driven in large part by AI—affects transmission planning and system resilience across the United States.
Curious how Bitcoin’s surge fits wider crypto trends? Explore our latest outlook in this Bitcoin market analysis now.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
