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Trump's Emergency Energy Auction: A Threat to Bitcoin Miners?
US President Donald Trump is planning an "emergency power auction" that could significantly impact Bitcoin miners. This initiative aims to finance new power plants through 15-year contracts with tech companies, potentially lowering electricity prices and alleviating pressure from AI data centers.
According to Bloomberg, Trump and governors from several northeastern US states are urging PJM, the largest power grid operator in the country, to conduct this auction. The initiative is intended to address rising electricity costs, which have been exacerbated by increasing demand from large data centers, crucial for economic growth and competitiveness in artificial intelligence.
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"The ongoing power crisis we are experiencing due to AI demand will only worsen without intervention," stated The Kobeissi Letter.
The proposed auction could secure the construction of new power plants worth approximately $15 billion. Tech companies would be responsible for the costs, regardless of whether they utilize the generated power. PJM currently serves over 67 million people across a region from the Mid-Atlantic to the Midwest, which has the highest density of data centers globally, particularly in Northern Virginia.
In September 2025, the average retail price of electricity in the US rose by 7.4% to a record 18.07 cents per kilowatt-hour, with household prices increasing even more. The National Energy Assistance Directors Association reported a 10.5% rise in prices from January to August 2025, marking one of the largest increases in over a decade.
Impact on Bitcoin Mining Operations
The competition for electricity is increasingly favoring AI operations over Bitcoin mining. In Texas, electricity requests totaled 226 gigawatts in 2025, with AI companies accounting for about 73% of new applications, surpassing Bitcoin miners. Energy providers prefer AI data centers due to their continuous high power demand and willingness to pay higher prices.
This shift in demand is forcing major miners like Galaxy Digital, CleanSpark, and IREN to adapt. Bitfarms announced plans to transition its mining facility in Washington to focus on HPC and AI tasks, suggesting that this shift could yield more operational profit than Bitcoin mining ever did.
If Trump's emergency power auction successfully lowers electricity prices, Bitcoin miners could benefit financially, as mining profits are directly tied to electricity costs. Reduced power expenses would lower operational costs and improve profit margins, potentially allowing some mining operations to remain competitive without transitioning to HPC.
Conclusion
Trump's emergency energy auction represents a significant intervention in the US energy markets, with potential implications for both the cryptocurrency sector and the broader economy. The outcome of this initiative could reshape the landscape for Bitcoin miners, particularly in regions facing high electricity costs.
"We believe that simply transitioning our Washington site to GPU-as-a-Service is likely to generate more operational profit than we have ever achieved with Bitcoin mining," said Ben Gagnon, CEO of Bitfarms.
As the situation develops, it will be crucial for stakeholders in the cryptocurrency and energy sectors to monitor these changes closely.
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