A longstanding problem in crypto mining is now proving to be a boon for miners. Riot Platforms, a Bitcoin (BTC) mining company, generated nearly $32 Million by curtailing its energy consumption and selling the excess to Electric Reliability Council of Texas (ERCOT), Texas’ electricity grid operator, news agency CNBC first reported. The amount equates to around 1,136 BTC. The flagship crypto asset is trading at a market price of $25,739 at the time of writing.
An Energetic Win For Riot Platforms
Riot Platforms mined 3,890 Bitcoin in the first half of 2023. Altogether, the company possesses 7,265 BTC, equating to over $200 MIllion. The organization reported that mining a Bitcoin costs them $8,960. Texas is a haven for crypto miners. The average commercial electricity rate is 8.68 cents according to the Energy Information Administration (EIA), a federal agency. That’s nearly 30 percent less than the national average.
Furthermore, they produced 333 BTC in August 2023, 19 percent lower than July. Production is down by 11 percent year-on-year. Riot deployed 95,904 miners with hashrate equalling 10.7 EH/s2. Bitcoin net sales proceeds withered 29 percent this month. Demand Response Credits and Power Credits increased 2,933 percent and 709 percent, respectively.
Riot CEO Jason Les believes this has cut operations costs significantly. He said, “The effects of these credits significantly lower Riot’s cost to mine Bitcoin and are a key element in making Riot one of the lowest cost producers of Bitcoin in the industry”.
According to the official press release, the initial purchase order includes 33,280 miners. In June 2023, the company purchased the next generation machines designed to mine cryptocurrencies from MicroBT. Consequently, their self-mining capacity may increase up to 20.1 EH/s upon full deployment.
Crypto Mining Stocks Rose This Week
Rise in global temperature is leading to extreme climatic conditions globally. Texas documented record breaking heat this year. The heat advisory is now in effect across the state. Extreme heat usually leads to a spike in energy demand, however, grid operators may not be able to handle that excess demand.
The Motley Fool, a stock market research and publishing company, reported that the prices of crypto mining stocks increased this week. The rise has been attributed to major economic developments. The Bureau of Economic Analysis (BEA) revised their gross domestic product (GDP) estimate from 2.4 percent to 2.1 percent.
RIOT stock plunged by almost 50 percent in August 2023. However, on August 29, the company shares gained over 17 percent following Grayscale Bitcoin Trust’s win against the Securities and Exchange Commission (SEC), the U.S. regulatory watchdog.