Riot Platforms says Texas energy strategy reduced production costs by $31M


Bitcoin miner Riot Platforms mined fewer Bitcoin in August than July however acquired over $31 million in energy credit. That is the equal of round 1,136 Bitcoin (BTC), CEO Jason Les identified in a statement.

Riot acquired an estimated $24.2 million in energy curtailment credit below its contract with Texas grid operator Electric Reliability Council of Texas (ERCOT) and $7.4 million from ERCOT’s demand response program. Those month-to-month credit are larger than the credit the corporate acquired for all of 2022, Les stated.

Riot Platforms mining statistics for August. Source: Riot Platforms

According to a presentation launched by Riot on Sept. 6, the corporate’s energy strategy is predicated on three mechanisms, and all rely upon its long-term ERCOT contract. Power credit are acquired when the corporate curtails operations and returns energy to ERCOT when the worth of electrical energy makes mining unprofitable.

Related: Marathon Digital blames weather conditions for mining 21% less Bitcoin in June

Demand and response credit are acquired when Riot “competitively bids to sell ERCOT the option to control Riot’s electrical load,” whether or not or not the electrical firm chooses calls on Riot to cut back consumption. Les stated:

“The effects of these credits significantly lower Riot’s cost to mine Bitcoin and are a key element in making Riot one of the lowest cost producers of Bitcoin in the industry. Riot’s power strategy is a key competitive advantage.”

Texas skilled notably harsh climate in August, with temperatures close to or above record-high ranges for days on finish. Riot’s presentation famous, “Bitcoin Mining is one of the few industries that can lower energy consumption and support the grid during times of demand stress.”

Riot Platforms saw a loss of $27.7 million within the second quarter of this 12 months, however that could be a huge enchancment year-on-year — the corporate was down $353.6 million in Q2 2022, through the depths of the crypto winter. The firm plans to install thousands of latest miners earlier than the Bitcoin halving.

Magazine: Crypto City: Guide to Austin