Riot Platforms Achieves $31 Million in Cost Savings Through Innovative Energy Strategy
Riot Platforms, a leading Bitcoin mining firm, has announced substantial cost savings and operational achievements resulting from an innovative energy strategy. In August alone, the company saved approximately $31 million, solidifying its position as one of the industry’s lowest-cost producers.
CEO Jason Les revealed in a recent press release that Riot achieved a new monthly record for Power and Demand Response Credits, totaling $31.7 million in August. This amount exceeded the company’s total credits received throughout 2022. These credits, equivalent to about 1,136 Bitcoin based on August’s average price, have significantly reduced Riot’s Bitcoin mining costs.
Riot is actively working to recover from the damages caused by a severe winter storm in Texas last December. The company aims to reach a self-mining hash rate capacity of 12.5 EH/s at its Rockdale facility by the end of 2023. Additionally, Riot has entered a long-term purchase agreement with MicroBT, ordering 7.6 EH/s of next-generation Bitcoin miners for its Corsicana Facility. By mid-2024, Riot’s total self-mining hash rate capacity is expected to reach 20.1 EH/s.
Riot’s Critical Role in Stabilizing Texas Energy Grid During Heatwave
During the extreme heatwave that hit Texas in August 2023, Riot’s power strategy played a crucial role in stabilizing the state’s energy grid. The company curtailed its power usage by over 95% during peak demand periods, redirecting energy resources to the Texas grid operator ERCOT instead of Bitcoin mining.
This significant power curtailment contributed to a substantial reduction in overall power demand within ERCOT, ensuring uninterrupted service for consumers during critical periods for the state’s electric grid.
Hot Take
Riot Platforms’ innovative energy strategy and cost-saving measures demonstrate the potential for Bitcoin mining firms to have a positive impact on energy grids and contribute to sustainability. By actively managing power usage and leveraging demand response credits, companies like Riot can not only reduce costs but also stabilize energy grids during periods of high demand.
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