Bitcoin

Bitcoin mining revived my rural community of Rockdale

(Editor’s note: This article by Mayor Ward Roddam appeared in the Austin American-Statesman on Sunday, Oct. 6, 2024.—K.W.C.)

The discovery of oil in East Texas more than a century ago sparked an energy boom that propelled our state into the modern age. Now, we are on the cusp of a new economic renaissance — a digital energy boom — thanks, to Bitcoin. And rural communities stand to benefit the most. My hometown of Rockdale is the perfect example.

Rockdale was once a manufacturing hub, home to the Alcoa aluminum plant, which opened in 1952 and became one of the world’s largest smelting facilities. It was the economic heart of our town, a major employer, and critical to Texas’ manufacturing supply chain. The plant’s success provided significant tax revenue and jobs for Rockdale.

Then, in 2008, energy prices rose, and new regulations forced the Alcoa plant to shut down. In our small town of 5,500, it felt like the rug was pulled out from under us. Hundreds of jobs vanished, and many families left in search of new opportunities. Rockdale lost millions in tax revenue, crippling our ability to fund schools, parks and public works. It seemed like the town’s best days were behind us.

Or so we thought. Although the plant closed, it left behind a massive energy infrastructure, including substations and transmission lines. This made Rockdale the perfect location for Bitcoin mining — a business that needs ample, affordable power.

At first, I wasn’t sure about these “miners.” Were they here to stay? Was Bitcoin even real? Like many Texans today, I had my fair share of doubts. But after years of working closely with those in the industry, I saw the benefits firsthand.

As both mayor and a lifelong resident of Rockdale, I learned that Bitcoin miners are deeply invested in the communities where they work. In Rockdale, these companies now employ hundreds of people. They’ve created mid-skill jobs, allowing locals to find well-paying employment without leaving town.

When Alcoa left Rockdale, the economy and tax base halved. But thanks to Bitcoin mining, we are today stronger than ever. Bitcoin mining companies have invested over $1 billion in Rockdale. They’re among the largest taxpayers in Milam County and our local school district. Beyond tax revenue, these companies donate to local causes, including scholarships, police and fire departments, youth sports, and the Chamber of Commerce. They sponsor community events like the annual Christmas tree lighting.

Are these the actions of people who don’t care about rural Texas? No. Many employees are Rockdale natives, invested in their hometown’s future.

I share Rockdale’s story because I hear a different narrative at the state legislature. Some policymakers — though well-intentioned — misunderstand Bitcoin’s positive impact. Some have suggested that Bitcoin miners create very few jobs, but my experience as mayor contradicts that.

And Rockdale’s experience is not unique. Bitcoin mining is one of the fastest-growing industries in Texas, employing over 22,000 people across the state. Communities like Corsicana will soon see the same economic benefits. Riot Platforms is building a state-of-the-art facility in Corsicana, which will be one of Navarro County’s largest employers. The mine could bring $1.4 billion in taxable purchases and over $115 million in wages over the next decade.

The same revitalization that gave Rockdale a second chance is now spreading to other rural communities. That’s why Texas leaders should recognize t he b enefits of Bitcoin m ining. Bitcoin i s like a digital oil well, poised to fuel the economic revival of rural Texas — if we allow it to grow.

Ward Roddam is the mayor of Rockdale. He recently testified at the Texas Senate Business and Commerce hearing regarding Rockdale and Bitcoin mining.