In August, Riot Platforms, a bitcoin mining company, made headlines by earning about $8.9 million from mining bitcoin. However, their success didn’t stop there. They also struck a deal with the Texas grid to sell excess power back, resulting in a whopping $31.7 million in revenue for the month. This unique power strategy has not only significantly reduced Riot’s costs but also positioned them as one of the most cost-effective bitcoin producers in the industry, according to CEO Jason Les. CNBC reports.
This shift in strategy comes after Riot experienced a net loss of over $500 million when the crypto market crashed in 2022, despite their previous success. The Texas grid operator, ERCOT, faced various challenges, including fluctuating energy prices, prompting the implementation of this program to benefit the grid and provide flexibility to its customers. In addition to selling excess power during slower times, bitcoin miners like Riot agreed to reduce their consumption during peak demand periods, as ERCOT requested multiple times during the scorching August heat, as reported by the Houston Chronicle. ERCOT estimated that bitcoin mining in Texas consumes more electricity than all the households in Houston combined, emphasizing the scale of this industry’s power needs. (Read more power grid stories.)
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