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Texas Pauses Data Centers
Texas's governor-elect has promised to keep data center approvals on hold until the legislature writes new rules, affecting Bitcoin miners. Bernstein has cut its price targets on seven miners by 35% to 54%. The pause is expected to extend beyond December 10, with lawmakers convening on January 12 and a legislative session running to May 31.
Texas's governor-elect, Gina Hinojosa, has promised to keep data center approvals on hold until the legislature writes new rules, which may affect Bitcoin miners that have turned into AI landlords.
Bernstein has cut its price targets on seven miners, including Riot Platforms, Galaxy, and Core Scientific, by 35% to 54%, citing tighter financing markets and overall Texas uncertainty.
The miners can be sorted into groups based on their progress in clearing regulatory gates, with some having cleared every gate for their leased capacity and others waiting on state permits or grid operator approvals.
The pause is expected to extend beyond December 10, with lawmakers convening on January 12 and a legislative session running to May 31, and Bernstein analyst Gautam Chhugani expects the data center pause to continue and any data center potential legislation to remain in gridlock.
The stocks of the affected miners drew a rough line the day after the vote, with Cipher falling 20%, CleanSpark and Galaxy falling about 17%, and TeraWulf and Applied Digital falling less than 7%.
Source: gov.texas.gov
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