Bitcoin mining outfit Riot Platforms earned $31.7 million from Texas power authorities last month for curtailing operations — far more than the value of the Bitcoin it mined in the same period. The Register reports: In a press release yesterday, Riot said it produced 333 Bitcoin at its mining operations in Rockdale, Texas, which would have been worth just shy of $9 million on August 31. All the cash earned from those energy credits, on the other hand, equates to around 1,136 Bitcoin, Riot CEO Jason Les said in the company’s monthly update. “August was a landmark month for Riot in showcasing the benefits of our unique power strategy,” Les said. “Riot achieved a new monthly record for Power and Demand Response Credits … which surpassed the total amount of all Credits received in 2022. “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,” Les said.
The Electric Reliability Council of Texas (ERCOT) operates a demand response program that allows big energy consumers, like Riot, to earn power credits for using less of it for operations and selling power back to the grid, as well as additional credit for being enrolled in its demand response programs. As we reported in August of last year, the company earned $9.5 million in credits during a July 2022 heatwave as well — still far less than it earned in Texas’s hottest August on record this year.