US Power Grid Issues Red Alert Amid Heatwave, Is Bitcoin Mining the Scapegoat?

Author: Heart of Computing Power

At the end of June 2026, a "heat dome" pushed the largest power grid in the US, PJM, to the brink.

On July 1, this grid, which serves 67 million people, recorded its second-highest electricity load in history at 161,910 MW.

The next day, the operating reserve capacity plummeted from 10,996 MW to 5,091 MW, leaving a dangerously thin buffer.

Thus, on June 30, Energy Secretary Chris Wright signed two emergency orders that took effect at 11:59 PM that night.

The first order allowed designated units to temporarily exceed environmental emission limits to maximize power generation.

The second order, as a last resort, allowed the grid to mandate that large users (such as data centers and Bitcoin mines) consuming over 50 MW disconnect from the grid within 15 minutes and use their backup generators.

On July 2, wholesale electricity prices soared above $2,000/MWh, with the settlement price at Western Hub reaching $1,222.75/MWh, nearly tripling compared to the same period last year.

From July 1 to July 3, PJM continuously issued heat alerts and maximum generation warnings, urging power plants to postpone maintenance and operate all units.

Meanwhile, at a mining facility covered by PJM, rows of ASIC miners were orderly shutting down.

Did you think miners were losing money staring at black screens? On the contrary, they might be earning higher profits than from mining itself.

1. Getting Paid to Shut Down

In fact, in the power grid system, large Bitcoin miners are never just "big power consumers"; they are actually engaged in a "betting" business.

The grid has a "demand response" mechanism.

Simply put, the grid signs agreements with large customers, providing them with low-cost electricity during normal times, but in extreme weather when the grid is on the verge of collapse, they must comply and shut down, in return for generous compensation.

PJM's ELRP (Emergency Load Response) and CP (Capacity Performance) programs are typical examples of this mechanism.

Mining companies like Bitfarms and Mawson participate in local demand response projects at PJM sites.

Moreover, in the neighboring ERCOT grid in Texas, leading mining company Riot Platforms has successfully established this business model.

In Q1 2026, they received a total of $21.0M in electricity reduction credits, a staggering 171% increase year-on-year.

Of this $21.0M, $13.5M came from direct electricity reductions, and $7.5M from participation in demand response.

CFO Jason Chung stated in the earnings call that these credits reduced their net electricity cost to $0.03/kWh, directly lowering their mining cost to $44,629 per Bitcoin, a 26% decrease from the previous quarter.

After all, when electricity prices soar, it is better to shut down the machines and sell the electricity back to the grid for a profit rather than mining at a loss.

Essentially, they are turning idle computing power into an "insurance product" for the grid.

2. The Real Power Guzzler is AI

While miners have found a way to profit from shutting down, if we zoom out, we see that Bitcoin mining is merely a minor player in this power struggle.

The real reason the Energy Department issued two emergency orders was primarily due to AI data centers.

PJM's capacity auction prices skyrocketed from $28.92/MW-day for the 2024/25 fiscal year to over 10 times that, reaching $329.17/MW-day for the 2026/27 fiscal year, hitting the price ceiling.

Why such a crazy increase?

PJM predicts that by 2030, regional electricity demand will surge by 32 GW, with 30 GW coming from data centers.

The world's largest data center hub, Northern Virginia, has seen electricity demand overwhelm Dominion Energy, the power company.

In February 2026, PJM warned that there could be a 60 GW power supply gap in the next decade.

Electricity has become a resource fiercely contested by AI data centers, leading to supply shortages and naturally rising prices.

In contrast, data from the US Energy Information Administration shows that Bitcoin mining accounts for only 0.6% to 2.3% of annual electricity consumption in the US.

The real pressure on the grid comes from the exponentially soaring demand for AI computing power.

3. If You Can't Beat Them, Join Them: The Ultimate Transformation of Mining Giants

The meteorological bureau predicts that there will still be extreme heat risks in the PJM region in mid-July.

While investors keep a close eye on wholesale electricity prices and mining companies' production cut announcements, the real top players have already begun to change lanes.

Since AI is the biggest "power guzzler" and will be the largest buyer in the future, mining companies that hold electricity metrics and infrastructure naturally know where to head.

Taking Riot Platforms as an example, they completed a transformation in Q1 2026, evolving from a pure Bitcoin mining company to a "large data center operator."

AMD expanded its contract at the Riot Rockdale facility from 25 MW to 50 MW in Q1.

For these leading players, traditional Bitcoin mining is becoming a foundational business that provides cash flow.

Handing over their existing electricity quotas and facilities to high-performance AI computing, which urgently needs energy, is the new story for future valuations.

The heat alert is still ringing, and the electricity meters are still turning.

In this life-and-death race for energy, capital will always find the most profitable gap ahead of ordinary people.

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