A Bitcoin mining company earns $31.7 million in energy credits
August: A Landmark Month for Riot Platforms
Riot Platforms, a Bitcoin mining company with operations in Texas, achieved a record profit of $31.7 million in energy credits. This significant milestone was reached by reducing power usage during the continuously high temperatures in August.
ERCOT’s Demand Response Program
Jason Les, CEO of Riot Platforms, Inc., referred to August as a “landmark month” after being paid through the Electric Reliability Council of Texas (ERCOT)’s demand response program. ERCOT, responsible for running the state’s power grid, pays entities like Riot to cut back on power usage during periods of peak demand.
Contributing to Grid Stability
Riot Platforms curbed its power usage by over 95% during peak periods, forgoing revenue from Bitcoin mining operations to provide energy resources to ERCOT. This reduction in power demand significantly contributed to ensuring uninterrupted service for consumers.
Conservation Efforts in Texas
Texans were repeatedly asked to conserve energy last month. ERCOT relies on large load carriers, such as Riot, to turn off at strategic times to assist with power generation. Energy Ogre CEO, David Kinchen, explained that this goes beyond typical conservation efforts and involves temporarily shutting down specific loads to free up the grid.
Texas’ Bitcoin Mining Industry
Texas has become a favorable location for Bitcoin miners, with mining accounting for a significant portion of the state’s energy consumption. In 2022, bitcoin projects alone consumed 33 gigawatts of energy, surpassing the combined energy usage of all households in Houston, estimated at six gigawatts per year.
Riot Platforms’ Operations and Payout
CNBC conducted an in-depth analysis of Riot Platforms’ operations and the payout received from ERCOT. Riot has been powering down its mine, located an hour north of Austin, to alleviate strain on the grid. The financial boost from ERCOT comes at a crucial time for Riot, as the company has been facing significant losses.
Riot Platforms’ achievement of earning $31.7 million in energy credits demonstrates the potential benefits of Bitcoin mining companies participating in demand response programs. By reducing power usage during peak demand, these companies can contribute to grid stability and ensure uninterrupted service for consumers.