Bitcoin

Read

<div class="cryptonews"> 
 <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 <a rel="noopener noreferrer nofollow" title="crisis" href="https://thebittimes.com/tag/crisis.html">crisis</a> driven by extreme weather conditions, Texas has turned to an unlikely ally for <a rel="noopener noreferrer nofollow" title="energy" href="https://thebittimes.com/tag/energy.html">energy</a> conservation: Riot Platforms, a major Bitcoin (BTC) <a rel="noopener noreferrer nofollow" title="mining" href="https://thebittimes.com/tag/mining.html">mining</a> firm.</p> 
 <p>The state’s power grid operator has awarded Riot Platforms $31.7 million in <a rel="noopener noreferrer nofollow" title="energy" href="https://thebittimes.com/tag/energy.html">energy</a> 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> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <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 @JasonLes_ , CEO of Riot. “Riot achieved a new monthly record for Power and Demand Response…</p>— Riot Platforms, Inc. (@RiotPlatforms) September 6, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <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> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Blockchain giants pour investments into Bitcoin mining | Opinion 
 </div> 
 <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 petition 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> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <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. https://t.co/0Ch8gSahx5</p>— Sawyer Hackett (@SawyerHackett) September 7, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>The Bitcoin <a rel="noopener noreferrer nofollow" title="mining" href="https://thebittimes.com/tag/mining.html">mining</a> industry has been at the center of controversy, particularly in Texas, where the state’s <a rel="noopener noreferrer nofollow" title="energy" href="https://thebittimes.com/tag/energy.html">energy</a> 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 <a rel="noopener noreferrer nofollow" title="energy" href="https://thebittimes.com/tag/energy.html">energy</a> landscape.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Coinbase, Bitcoin mining stocks soar after Grayscale’s win over SEC 
 </div> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div> 
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/texas-provides-riot-31-7m-to-halt-bitcoin-mining-amidst-energy-crisis-tbt62107.html">https://thebittimes.com/texas-provides-riot-31-7m-to-halt-bitcoin-mining-amidst-energy-crisis-tbt62107.html</a></p>

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

Table of Contents

TheBitTimes

Other articles published on Sep 8, 2023

XRP’s Uncertain Future, But VC Spectra’s (SPCT) Presale Promises Big

MicroStrategy to avoid reporting massive Bitcoin loss

Litecoin Price Analysis: LTC Prints Triple-Bottom, This Hot Altcoin Breaks Key Point in Presale

US CFTC Slaps Penalties on DeFi Platforms on Derivative Trades

SuperEx Teams Up with DAO to Attend Token2049 Singapore Conference, Launching 4 Major Promotional...

BTC Price Bounce Backs Above $26,000, Sell the Rise?

Join our free newsletter for daily crypto updates!