President Trump’s Proposed “Emergency Power Auction”: Implications for Bitcoin Miners

President Trump is set to announce a significant emergency power auction aimed at encouraging technology companies to invest in new power plants. This initiative seeks to alleviate the rising electricity costs, potentially affecting both the cryptocurrency sector and the broader economy as the 2026 midterm elections approach.

Key Takeaways

President Trump's upcoming emergency power auction aims to encourage tech companies to invest in new power plants, potentially easing electricity costs.
The auction would involve tech firms bidding for contracts to develop approximately $15 billion in energy infrastructure.
Rising electricity prices are largely driven by demand from AI data centers, which has led to higher costs for households and displaced Bitcoin miners.
Miners may benefit if electricity costs decrease, as reduced power expenses could enhance profitability and competitiveness.

Overview of Trump’s Emergency Power Auction

According to Bloomberg, President Trump, along with governors from several Northeastern U.S. states, is urging PJM, the largest electricity grid operator in the country, to conduct a power auction. The push is expected to take the form of a non-binding "statement of principles," which would be signed by Trump’s National Energy Dominance Council and governors from states like Pennsylvania, Ohio, Virginia, and others.

This initiative would have tech companies bid for 15-year contracts to construct new power plants, potentially facilitating the development of around $15 billion in new energy infrastructure. Technology firms would bear the costs of these plants, regardless of whether they use the electricity generated.

PJM supplies electricity to over 67 million people across a region stretching from the Mid-Atlantic to the Midwest, and it already hosts the world’s largest concentration of data centers, particularly in Northern Virginia.

Addressing the National Energy Crisis

The proposed emergency auction represents a significant intervention in the U.S. energy markets. While President Trump has repeatedly pointed to decreasing oil and gasoline prices since taking office, electricity costs have been steadily increasing due to rising demand.

Much of this demand is being driven by large data centers, which the administration and tech companies argue are crucial for economic growth and maintaining the United States' competitive edge in artificial intelligence (AI). However, these data centers are also contributing to higher electricity costs for households.

In September 2025, the average retail electricity price in the U.S. surged by 7.4% to a record high of 18.07 cents per kilowatt-hour. Residential electricity prices experienced an even steeper increase, with the National Energy Assistance Directors Association reporting a 10.5% jump from January to August 2025—one of the most significant increases in over a decade.

As highlighted by The Kobeissi Letter, “The ongoing electricity crisis we are facing due to AI demand will only get worse without intervention.”

Consequences for Bitcoin Miners

Currently, the competition for electricity favors AI operations over Bitcoin mining. Miners, who traditionally relied on affordable electricity to maintain their competitive edge, are at risk as AI data centers secure long-term power contracts.

In Texas, large power requests reached 226 gigawatts in 2025, with AI firms accounting for approximately 73% of new applications, surpassing Bitcoin miners. Utility companies are increasingly prioritizing AI data centers since they require consistent, reliable power and are willing to pay higher rates.

This change in the economic landscape has prompted major mining operations like Galaxy Digital, CleanSpark, and IREN to adapt their strategies. Bitfarms, for instance, announced in November its plans to repurpose its Washington State mining facility for high-performance computing (HPC) and AI workloads.

Ben Gagnon, CEO of Bitfarms, remarked, “We believe that converting just our Washington site to GPU-as-a-Service could potentially generate more net operating income than what we have achieved with Bitcoin mining, giving the Company a solid cash flow foundation that can support operational costs, general administrative expenses, and debt obligations while contributing to capital expenditure as we phase out our Bitcoin mining business in 2026 and 2027.”

The Current Reality of Bitcoin Mining

A Bitcoin miner recently shared insights into his current experience: operating 27 ASIC devices yields a monthly revenue of about $4,800 (approximately 0.053 BTC). After accounting for electricity and hosting expenses, the net profit is slightly over $1,000.

If electricity prices do indeed decrease as a result of Trump’s proposed emergency power auction, Bitcoin miners could see significant economic benefits. Mining profitability is heavily reliant on power prices; lower electricity costs would reduce operating expenses and enhance profit margins.

Any increase in energy generation capacity that alleviates supply constraints could thus provide indirect relief to miners, especially in regions where electricity costs are highest. Moreover, this initiative might slow the ongoing transition towards AI-centric infrastructure, allowing some mining operations to remain viable without needing to shift to HPC workloads. However, it’s worth noting that the proposal emphasizes long-term investments in new power generation, indicating that its effects may take time to materialize.