She owns Riot Platforms, a leading bitcoin mining and data center hosting company announce Unaudited Production and Operations Update for June 2023.
Despite the challenging conditions due to the extreme heat and high energy demand in Texas, the company managed to mine 460 BTC while benefiting greatly from its energy strategy.
Riot’s vertically integrated structure
According to the report, the company generated 460 BTC in June 2023. The average daily Bitcoin production was 15.3 BTC, down 32% from May 2023, but up 9% from June 2022.
Riot captured 7,250 BTC at the end of June 2023, up 1% from May 2023, and up 9% from June 2022. Much of this growth is attributed to the energy strategy adopted by the blockchain not so long ago.
Riot’s power strategy is unique in the bitcoin mining industry because, unlike many other mining companies that rely on cheap electricity rates, the company has developed a power strategy that allows it to scale back bitcoin mining operations and sell large blocks of power back into the network during peak periods. the demand. This ensures that energy is available to the people of Texas while generating economic benefits for the company.
Furthermore, Riot’s vertically integrated structure and balance sheet strength enable the company to take advantage of long-term, fixed-price energy contracts, which provide the flexibility to dynamically adjust the company’s energy use based on market signals.
This energy strategy is a key differentiator for Riot because it supports the company’s lower cost of production and helps stabilize the Texas power grid during periods of high demand.
Furthermore, the company announced an initial order for 33,280 MicroBT miners for its Corsicana facility, which is expected to add 7.6 Exa hashes per second (EH/s) to its self-mining fleet and provide an option for future orders on the same terms. Riot’s self-mining hashrate capacity is expected to total total 20.1 EH/s upon full deployment by mid-2024.
Riot’s June 2023 Operational Update shows a slight decrease in Bitcoin production and sales compared to the previous month, but a significant increase in energy sales and demand response revenue.
Riot Power Management offers a win-win solution for businesses and Texans
Riot’s energy strategy helps stabilize the Texas power grid during periods of high demand, which can help reduce energy costs and provide additional revenue streams for the company. By participating in ERCOT’s Additional Services and the Four Coincident Peak Program, Riot can sell the ability to control its electrical load on demand and cut power when needed to stabilize the grid.
The Company receives compensation for its participation in the Additional Services directly from ERCOT whether or not it is turned off. As a result of its participation in Four Coincident Peak in 2022, the company’s transportation fees in its 2023 ongoing monthly energy bills have been significantly reduced.
Overall, Riot’s energy strategy is a key component of the company’s low cost of production for bitcoin mining. By limiting energy use during periods of high demand, selling excess power back to the grid, and participating in ERCOT’s ancillary services, a company can reduce energy costs and maintain a competitive advantage in the market.
Featured image from Unsplash, chart from TradingView.com
