Riot Blockchain, one of the largest bitcoin mining operations in Texas, earned about $9.5 million in power credits last month by turning off miners.
According to the company, Monthly reportRiot voluntarily reduced energy consumption and made more power available to ERCOT, which powers 25 million Texans.
Riot CEO Jason Les said ERCOT saw record energy demand in July. In total, the company has saved 11,717 megawatt hours to make more electricity available to the state. That’s enough for him to power over 13,000 average Texas homes for a month.
“We are pleased to report that Riot has demonstrated the effectiveness of its power strategy during the month of July. We are actively pursuing new technologies to support ERCOT and provide the unique ability to free up capacity on the grid when power demand in Texas is high,” he explained.
Reducing power consumption has reduced Riot’s bitcoin production by an average of about 21% per month, but has also significantly reduced the company’s monthly power costs. In July, Riot produced a total of 318 BTC, increasing its total holdings to 6,696 BTC. In the same month, the company sold his 275 BTC, making about $5.6 million.
By saving 11,717 MWh of electricity, the company earned approximately $9.5 million in electricity credits. With a reduced revenue of $1,122 per MWh, Riot made more money by stopping miners than by continuing to mine.according to arcane researchif the company had channeled this energy into mining BTC, it would have earned around $140 per MWh.
“Applied to the expected power costs for the month, the power credits and other perks effectively eliminated Riot’s power costs in July, leading the industry in a challenging macroeconomic environment.” It is expected to further strengthen our financial strength,” Les said. Company report.
Arcane pointed out that Riot’s July restrictions show the power of Bitcoin miners in stabilizing the grid. Mining is a very energy-intensive operation, but it can be adjusted quickly and easily with a high level of accuracy. Similar energy-intensive industrial operations are less flexible when it comes to reducing consumption, making miners a unique alternative for stabilizing stressed grids.
