Key points
- Texas ordered an audit of every data center in ERCOT's grid queue, which held more than 1,800 projects and 474 GW. New approvals are frozen.
- Bernstein says approved megawatts just got more valuable, and named CIFR, CLSK and CORZ as most exposed, WULF, RIOT and IREN as insulated.
- Cipher (CIFR) closed down 15.6% and Hut 8 (HUT) down 9.7%, but both reported Q2 misses that morning.
Texas Governor Greg Abbott ordered a state audit of every data center waiting to connect to the Texas power grid. The directive went Monday to the Public Utility Commission of Texas and the Electric Reliability Council of Texas. It requires developers to disclose their tax incentives, power consumption, water use and ownership.
"Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid," Abbott said.
ERCOT's queue had swollen to more than 1,800 projects asking for over 474 gigawatts between them, more than five times the grid's record peak demand. About 90% of those requests came from data centers.
The order didn't move the group as one. Cipher Digital (CIFR) closed down 15.6% Tuesday after its own earnings miss, and IREN Ltd (IREN) closed up 2.8%.
ERCOT paused its batch zero transmission planning study to carry out the order, and new approvals are frozen until the audit is finished. Projects with their own generation are exempt, as is anything outside ERCOT's territory, including El Paso.
Bernstein says the freeze makes approved power worth more
Bernstein told clients the audit leaves existing capacity alone, since every contract under execution across its coverage is for power that's already been approved. The firm expects the freeze to show up in pricing instead.
"We believe with increasing political opposition to new data center projects and fresh capacity being throttled by moratoriums/state directives, the approved MWs become more valuable," Bernstein said.
Bernstein named Cipher, CleanSpark (CLSK) and Core Scientific (CORZ) as the most exposed, because their near-term expansion plans all depend on new Texas grid connections. It listed TeraWulf (WULF), Riot Platforms (RIOT) and IREN as insulated, citing geographic diversification and ERCOT capacity that's already been approved, and all three of those closed higher Tuesday.
New York did something similar three weeks ago. Governor Kathy Hochul signed a first-in-the-nation moratorium on new hyperscale data centers, and TeraWulf fell 6.7% that day, the hardest hit name in the group.
Cipher and Hut 8 both reported Tuesday morning
Cipher posted second-quarter revenue of $24.84 million, down 43% from a year ago and short of the $32.52 million consensus. The loss came to 65 cents a share against a 22-cent estimate, and adjusted EBITDA was negative $30 million.
Tyler Page, chief executive of Cipher, said the company is "proud to have delivered our first HPC data center capacity ahead of schedule and announce that rent has commenced at the site." The site is Black Pearl, where a lease amendment moved delivery up two months to August. Cipher also took an option on up to 900 MW at Apollo, a 288-acre site near San Antonio, and closed a bond offering to fund its Stingray build in West Texas.
Hut 8 (HUT) reported revenue of $74.93 million against a $79.75 million estimate, and a net loss of $177.14 million, or $1.27 a share. Analysts had expected a 41-cent loss. Mark-to-market losses on digital assets accounted for $138.6 million of that.
Asher Genoot, chief executive of Hut 8, said the company's power-first model drove commercial and financial milestones across its first two AI data center campuses. After the quarter closed, Hut 8 signed a second 352 MW lease at Beacon Point, its campus in Nueces County near Corpus Christi.
The steepest drops Tuesday were in Texas power producers rather than miners. NRG Energy (NRG) closed down 15.5% at $117.04 after touching a 52-week low of $112.50 during the session. Adjusted earnings of $1.49 a share missed the $1.69 estimate, though NRG reaffirmed its full-year guidance. Vistra (VST) fell 8.2% with no company news of its own and reports Friday.
Across the ten miners and data center operators with Texas sites, seven closed flat or higher.
| Company | Tuesday close | Change |
|---|---|---|
| IREN Ltd (IREN) | $40.85 | +2.8% |
| Galaxy Digital (GLXY) | $22.15 | +1.2% |
| Riot Platforms (RIOT) | $21.58 | +0.8% |
| TeraWulf (WULF) | $18.89 | +0.3% |
| MARA Holdings (MARA) | $11.76 | +0.1% |
| Bitdeer Technologies (BTDR) | $11.38 | 0.0% |
| Core Scientific (CORZ) | $22.82 | 0.0% |
| CleanSpark (CLSK) | $14.16 | -3.4% |
| Hut 8 (HUT) | $101.25 | -9.7% |
| Cipher Digital (CIFR) | $20.39 | -15.6% |
The group is uneven underneath the shared label, and we've mapped how far each miner has actually gotten in the pivot from mining to AI hosting.
Bernstein's own closing line was about the operators that already hold power. "Emerging AI Infra stocks remain well positioned to solve 'time to compute' given their planned 30GW power portfolio," the firm wrote.
Sources
- Governor Greg Abbott's directive to the PUCT and ERCOT, August 3, 2026, via the Texas Tribune, for the quote, the disclosure requirements, the batch zero pause and the El Paso and on-site generation exemptions
- ERCOT interconnection queue figures of more than 1,800 projects and more than 474 gigawatts, about 90% of it data centers
- Bernstein research note, August 4, 2026, via The Block, for the Bernstein quotes and the exposed and insulated lists
- Cipher Digital second-quarter 2026 results, August 4, 2026, for revenue, loss per share, adjusted EBITDA, the Tyler Page quote, and the Black Pearl, Apollo and Stingray details
- Hut 8 second-quarter 2026 results, August 4, 2026, for revenue, net loss, the $138.6 million mark-to-market figure, the Asher Genoot comment and the 352 MW Beacon Point lease
- NRG Energy second-quarter 2026 results, August 4, 2026, for adjusted earnings of $1.49 a share and the reaffirmed guidance
- Closing prices for August 4, 2026
