{"id":22009,"date":"2023-09-06T19:33:28","date_gmt":"2023-09-06T19:33:28","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/riot-platforms-says-texas-energy-strategy-reduced-production-costs-by-31m\/"},"modified":"2023-09-06T19:33:30","modified_gmt":"2023-09-06T19:33:30","slug":"riot-platforms-says-texas-energy-strategy-reduced-production-costs-by-31m","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/riot-platforms-says-texas-energy-strategy-reduced-production-costs-by-31m\/","title":{"rendered":"Riot Platforms says Texas energy strategy reduced production costs by $31M"},"content":{"rendered":"
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Bitcoin miner Riot Platforms mined fewer Bitcoin\u00a0in August than July but received over $31 million in power credits. That is the equivalent of around 1,136 Bitcoin (BTC), CEO Jason Les pointed out in a statement.<\/p>\n

Riot received an estimated $24.2 million in power curtailment credits under its contract with Texas grid operator Electric Reliability Council of Texas (ERCOT) and $7.4 million from ERCOT\u2019s demand response program. Those monthly credits are greater than the credits the company received for all of 2022, Les said. <\/p>\n

Riot Platforms mining statistics for August. Source: Riot Platforms<\/em><\/figcaption><\/figure>\n

According to a presentation released by Riot on Sept. 6, the company\u2019s power strategy is based on three mechanisms, and all depend on its long-term ERCOT contract. Power credits are received when the company curtails operations and returns power to ERCOT when the price of electricity makes mining unprofitable. <\/p>\n

Related: <\/em><\/strong>Marathon Digital blames weather conditions for mining 21% less Bitcoin in June<\/em><\/strong><\/strong><\/p>\n

Demand and response credits are received when Riot \u201ccompetitively bids to sell ERCOT the option to control Riot\u2019s electrical load,\u201d whether or not the electric company chooses calls on Riot to reduce consumption. Les said:<\/p>\n

\u201cThe effects of these credits significantly lower Riot\u2019s cost to mine Bitcoin and are a key element in making Riot one of the lowest cost producers of Bitcoin in the industry. Riot\u2019s power strategy is a key competitive advantage.\u201d<\/p><\/blockquote>\n

Texas experienced particularly harsh weather in August, with temperatures near or above record-high levels for days on end. Riot\u2019s presentation noted, \u201cBitcoin Mining is one of the few industries that can lower energy consumption and support the grid during times of demand stress.\u201d <\/p>\n

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#Bitcoin<\/a> miners are having a banner 2023: with costs to mine below the current price of bitcoin and rising production, margins are expanding, revenues are exploding, and profitability is turning the corner. @RiotPlatforms<\/a> @MarathonDH<\/a> @Hut8Mining<\/a> @HIVEDigitalTech<\/a> @BitDigital_BTBT<\/a>\u2026 pic.twitter.com\/kqN022CmTz<\/a><\/p>\n

\u2014 Juan Leon (@singularity7x) August 30, 2023<\/a><\/p><\/blockquote>\n

Riot Platforms saw a loss of $27.7 million in the second quarter of this year, but that is a vast improvement year-on-year\u00a0\u2014 the company was down $353.6 million in Q2 2022, during the depths of the crypto winter. The company plans to install thousands of new miners before the Bitcoin halving. <\/p>\n

Magazine: <\/em><\/strong>Crypto City: Guide to Austin<\/em><\/strong><\/strong><\/p>\n<\/div>\n