<p class="is-style-lead">Texas Bitcoin miners have cut back 90% of their operations during the energy crisis after the state offered $31.7 million in energy credits.&nbsp;</p> 
<p>Amid an escalating power crisis driven by extreme weather conditions, Texas has turned to an unlikely ally for energy conservation: Riot Platforms, a major Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) mining firm.</p> 
<p>The state’s power grid operator has awarded Riot Platforms $31.7 million in energy credits for reducing electricity consumption during the ongoing heat wave. The sum eclipses the $9.7 million worth of Bitcoin the company mined in the same period.</p> 
<p>The credits are commissioned by the Electric Reliability Council of Texas (ERCOT), and it will alleviate immediate stress on the grid while simultaneously lowering Riot’s operational costs.&nbsp;</p> 
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   <p lang="en" dir="ltr">Riot Produces 333 Bitcoin While Realizing Expanded Benefits of Power Strategy.<br><br>“August was a landmark month for Riot in showcasing the benefits of our unique power strategy,” said <a href="https://twitter.com/JasonLes_?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@JasonLes_</a> , CEO of Riot. “Riot achieved a new monthly record for Power and Demand Response…</p>— Riot Platforms, Inc. (@RiotPlatforms) <a href="https://twitter.com/RiotPlatforms/status/1699407832695841040?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 6, 2023</a> 
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<p>Despite reporting a loss of over $500 million in 2022, Riot Platforms has found a silver lining in these energy credits. In its most recent quarter, the Bitcoin mining company posted a loss of around $27 million on revenue of $76.7 million. The energy credits, therefore, offer a much-needed financial cushion.</p> 
<p> You might also like: <a href="https://crypto.news/blockchain-giants-pour-investments-into-bitcoin-mining-opinion/" rel="noopener noreferrer nofollow"> Blockchain giants pour investments into Bitcoin mining | Opinion </a> </p> 
<h2 class="wp-block-heading" id="legislative-and-public-backlash-against-bitcoin-mining">Legislative and public backlash against Bitcoin mining</h2> 
<p>The state’s power infrastructure has been under increasing strain, worsened by climate change and surging demand. Last year, a snowstorm led to 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.</p> 
<p>During this crisis, allocating taxpayer-funded energy credits to Bitcoin miners has ignited public debate. A <a href="https://www.change.org/p/no-to-riot-bitcoin-mine-in-navarro-county" target="_blank" rel="noopener noreferrer nofollow">petition</a> from Navarro County residents garnered nearly 1,200 signatures, opposing a local Bitcoin mining facility and citing concerns over the “enormous burden on our already fragile infrastructure.”</p> 
<p>State lawmakers are also taking note. Earlier this year, the Texas Senate passed legislation restricting incentives for cryptocurrency miners participating in ERCOT’s load-reduction programs.</p> 
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   <p lang="en" dir="ltr">Wow. Texas gave a bitcoin mining company $31.7 MILLION in exchange for curtailing it’s mining in August as power demand surged.<br><br>Meanwhile everyday Texans are forced to conserve power to protect the grid. <a href="https://t.co/0Ch8gSahx5" target="_blank" rel="noopener noreferrer nofollow">https://t.co/0Ch8gSahx5</a></p>— Sawyer Hackett (@SawyerHackett) <a href="https://twitter.com/SawyerHackett/status/1699816096268738737?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 7, 2023</a> 
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<p>The <a href="https://crypto.news/blockchain-giants-pour-investments-into-bitcoin-mining-opinion/" rel="noopener noreferrer nofollow">Bitcoin mining industry</a> has been at the center of controversy, particularly in Texas, where the state’s energy woes have been exacerbated by the sector’s high electricity consumption. Riot Platforms and other large-scale miners like Marathon Digital Holdings have been forced to halt operations during past emergencies, affecting their profitability and sparking debates over their role in the state’s energy landscape.</p> 
<p> Read more: <a href="https://crypto.news/coinbase-bitcoin-mining-stocks-soar-after-grayscales-win-over-sec/" rel="noopener noreferrer nofollow"> Coinbase, Bitcoin mining stocks soar after Grayscale’s win over SEC </a> </p>

Texas provides Riot $31.7m to halt Bitcoin mining amidst energy crisis

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