Riot Platforms Supports Texas Energy Grid with Record-Breaking Energy Credits
In August, Riot Platforms, a Bitcoin mining and data center hosting firm, received an impressive $31.7 million in energy credits, setting a new monthly record. This significant achievement helped to stabilize the Texas energy grid following a surge in electricity demand during a summer heatwave.
To earn these credits, Riot reduced its power usage by over 95% during peak demand at its mining facility in Rockdale. The company also operates a mining facility in Corsicana. Riot’s CEO, Jason Les, stated that the amount of credits received in August surpassed the total for the entire year of 2022, equating to approximately 1,136 bitcoin based on the average price at that time.
Riot’s Success in August Compared to July
Despite sacrificing potential revenue from bitcoin mining, Riot still earned 333 bitcoin ($8.5 million) from mining operations in August, along with $40.2 million including the energy credits. Compared to July, the company fared better after receiving the credits, as it received fewer bitcoin and less credit in the previous month. These energy credits significantly lower Riot’s mining costs, positioning the company as one of the industry’s lowest cost producers of bitcoin.
Riot expects to achieve a total self-mining hash rate capacity of 12.5 EH/s at its Rockdale facility by the end of the year. Furthermore, with the deployment of new mining machines in mid-next year, the Corsicana facility aims to reach 20.1 EH/s.
Riot’s Financial Performance and Market Status
In the second quarter, Riot reported a net loss of $27.7 million, a considerable improvement compared to the same period last year. The company’s shares have experienced significant volatility, rising 222% year-to-date but having previously fallen 95% from its peak in February 2021.
Hot Take: Riot’s Energy Credits Boost Its Competitiveness
Riot’s ability to earn substantial energy credits not only benefits the Texas energy grid but also enhances the company’s position in the Bitcoin mining industry. By significantly reducing mining costs, Riot gains a competitive advantage and is well-positioned for the upcoming Bitcoin ‘halving’ event next year.
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