Texas Funds Riot Platforms To Stop Mining
Texas Bitcoin miners have taken a significant step towards energy conservation by reducing their operations by 90%. This reduction in electricity consumption comes as a response to the state’s offer of $31.7 million in energy credits to address the ongoing power grid challenges.
Wow. Texas gave a bitcoin mining company $31.7 MILLION in exchange for curtailing it’s mining in August as power demand surged.
Meanwhile everyday Texans are forced to conserve power to protect the grid. https://t.co/0Ch8gSahx5
— Sawyer Hackett (@SawyerHackett) September 7, 2023
Lifeline in Texas Energy Crisis
Riot Platforms, a major player in the Bitcoin (BTC) mining industry, unexpectedly became an ally in Texas’ efforts to combat the energy crisis. In recognition of their contribution, the state’s power grid operator awarded Riot Platforms a substantial sum of $31.7 million in energy credits. Remarkably, this amount surpasses the $9.7 million worth of Bitcoin mined by the company during the same period.
These energy credits are part of a program commissioned by the Electric Reliability Council of Texas (ERCOT) and are poised to provide immediate relief to the strained power grid while also reducing operational costs for Riot Platforms. Despite reporting losses exceeding $500 million in 2022, Riot Platforms has found a silver lining in these energy credits. In its most recent quarter, the Bitcoin mining company recorded a loss of approximately $27 million against revenue of $76.7 million. The energy credits, therefore, offer a much-needed financial cushion.
Riot Produces 333 Bitcoin While Realizing Expanded Benefits of Power Strategy.
“August was a landmark month for Riot in showcasing the benefits of our unique power strategy,” said @JasonLes_ , CEO of Riot. “Riot achieved a new monthly record for Power and Demand Response…
— Riot Platforms, Inc. (@RiotPlatforms) September 6, 2023
Climate Challenges and Debates
The energy crisis in Texas has been further exacerbated by climate change and surging energy demand. Last year’s devastating snowstorm resulted in widespread blackouts affecting both residential and commercial consumers. ERCOT’s recent emergency declaration, urging Texans to conserve energy between 5 p.m. and 9 p.m., underscores the ongoing challenges faced by the state’s power infrastructure. However, the allocation of taxpayer-funded energy credits to Bitcoin miners during this crisis has sparked public debate. A petition initiated by Navarro County residents garnered nearly 1,200 signatures, expressing concerns over a local Bitcoin mining facility and its perceived strain on the already fragile infrastructure.
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State lawmakers have taken notice of these concerns. Earlier this year, the Texas Senate passed legislation aimed at restricting incentives for cryptocurrency miners participating in ERCOT’s load-reduction programs. The Bitcoin mining industry, particularly in Texas, has been a focal point of controversy, given its substantial electricity consumption. Large-scale miners like Riot Platforms and Marathon Digital Holdings have previously had to halt operations during emergencies, affecting their profitability and leading to debates about their role in the state’s energy landscape.
