Riot Platforms earns $31.7M in electricity credits.

Yamini003

In July of this year, humanity experienced the hottest month in history, with many regions around the world facing unprecedented droughts and high temperatures, leading to a surge in electricity demand. In response to this, the state of Texas in the United States declared an ""electricity emergency,"" and the Electric Reliability Council of Texas (ERCOT) not only called on residents to conserve electricity but also stated that they would tap into more reserves to support the power supply.

Due to the extreme heat, Texas' electricity demand has nearly reached the available total supply, causing electricity prices to skyrocket and forcing Texas to risk rolling blackouts in certain areas.

Major U.S. Bitcoin mining giant Riot Platforms recently released a report for August 2023, stating that they reduced their electricity consumption by over 95% during peak electricity demand periods in August through a flexible electricity strategy, earning them energy-saving rebates totaling $31.7 million.

Riot obtained these rebates by participating in the Electric Reliability Council of Texas (ERCOT) electricity demand response program. If calculated based on the average Bitcoin price in August, Riot's rebates are equivalent to earning an extra 1,136 Bitcoins, doubling their income compared to July (approximately $40.2 million in August compared to about $19.9 million in July).

Jason Les, CEO of Riot, stated that August was a milestone month for the company, demonstrating their unique strategic advantage. Riot Platforms' stock price has risen 233% year-to-date.

Riot Platforms claims that their strategy in August made them the lowest-cost Bitcoin mining company in the industry. Their goal now is to maintain a healthy financial position, combined with the integration of efficient mining machines, in order to lead in the upcoming Bitcoin halving event next year.

It's worth noting that the recent increase in Bitcoin mining difficulty and hash rate is not favorable for mining companies, as it will reduce miners' earnings. According to HashrateIndex data, miners currently earn only $0.06 per Th/s, compared to the high point of $0.1216 per Th/s in early May during the Bitcoin mining frenzy, which is equivalent to a halving of earnings. Whether Riot Platforms and many other mining companies can maintain their current high valuations remains to be seen.

Ritu13

Electricity credits, this is another new concept.