Texas Bitcoin Miners Slash Operations by 90% Amid Energy Crisis
In response to the energy crisis caused by extreme weather conditions, Bitcoin mining firm Riot Platforms has drastically reduced its operations by 90%. As a result, the company has been awarded $31.7 million in energy credits by the Electric Reliability Council of Texas (ERCOT). This move aims to alleviate the strain on the state’s power grid while also lowering Riot’s operational costs.
Turning to an Unlikely Ally
Despite incurring a loss of over $500 million in 2022, Riot Platforms has found a silver lining in these energy credits. The company’s recent quarter saw a loss of around $27 million, making the energy credits a much-needed financial cushion.
Public and Legislative Backlash
However, allocating taxpayer-funded energy credits to Bitcoin miners has sparked public debate and legislative scrutiny. Concerns about the strain on the state’s infrastructure and ERCOT’s load-reduction programs have prompted opposition from residents and lawmakers alike.
Hot Take
The use of energy credits to incentivize Bitcoin miners during an energy crisis is a controversial move. It highlights the ongoing debate surrounding the role of cryptocurrency mining in the state’s energy landscape and the potential strain it puts on the power grid.
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