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Riot Platforms Secures Power Credits Amidst Decline in Bitcoin Mining

Riot Platforms earns substantial power credits despite a reduction in Bitcoin mining output, leveraging agreements with the Texas power grid.
Published on 2023-09-06

Bitcoin Mining Decline

Riot Platforms, a prominent Bitcoin miner, experienced a decrease in Bitcoin production in August compared to July. Despite the reduced output, the company strategically capitalized on power credits, achieving significant financial gains.

Power Credit Gains

The company secured over $31 million in power credits, equivalent to approximately 1,136 Bitcoin. This financial boost stemmed from Riot's contract with the Electric Reliability Council of Texas (ERCOT). Through this agreement, Riot received an estimated $24.2 million in power curtailment credits. Additionally, the company benefited from ERCOT’s demand response program, adding another $7.4 million to its earnings.

Strategic Agreements

These substantial monthly credits surpass the total credits Riot Platforms received throughout 2022. This achievement underscores the effectiveness of Riot’s strategic agreements and its ability to adapt to changing market conditions. The partnership with ERCOT has proven to be a pivotal aspect of Riot’s operational strategy, enabling the company to mitigate the impacts of fluctuating Bitcoin mining yields.

Conclusion

Riot Platforms demonstrates resilience in the face of decreased Bitcoin mining by leveraging power credit agreements with ERCOT. This approach not only offsets the decline in Bitcoin production but also highlights the potential financial advantages of strategic energy management in the cryptocurrency mining industry.

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