Riot Platforms Reports Decreased Bitcoin Mining Output in August but Secures $31 Million in Power Credits
Summary:
Bitcoin mining company Riot Platforms experienced a reduction in Bitcoin mined in August but received over $31 million in power credits. CEO Jason Les highlighted that these credits surpass the total credits received in 2022. The company's power strategy, dependent on a long-term contract with Texas grid operator ERCOT, involves curtailing operations and bidding to sell electrical load. Despite a loss in Q2 2023, Riot Platforms plans to install thousands of new miners before the Bitcoin halving.
Bitcoin miner Riot Platforms reported a decrease in the number of Bitcoin mined in August compared to July. However, the company received power credits worth more than $31 million, equivalent to around 1,136 BTC, according to CEO Jason Les. These credits include $24.2 million from their contract with Texas grid operator ERCOT and an additional $7.4 million from ERCOT's demand response program. Les emphasized that these monthly credits exceeded the credits received by the company throughout 2022. Riot's power strategy, reliant on its long-term ERCOT contract, involves curtailing operations during times of unprofitable mining and competitively bidding to sell ERCOT the option to control electrical load. Les believes that these credits play a crucial role in reducing mining costs and positioning Riot as one of the industry's lowest cost producers of Bitcoin. The harsh weather conditions experienced in Texas during August, along with Riot's ability to lower energy consumption and support the grid during times of high demand stress, further showcased the advantages of Bitcoin mining. Despite recording a loss of $27.7 million in the second quarter of this year, Riot Platforms has significantly improved since the same period last year when they reported a loss of $353.6 million. The company's future plans involve installing thousands of new miners ahead of the Bitcoin halving.
Published At
9/6/2023 7:15:00 PM
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