ERCOT paid Bitcoin miner Riot $31.7M to limit energy consumption during heat wave in August

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Riot Platforms is losing so much money that it’s counting on energy credits from selling power back to the Texas grid to keep its costs under control, reports said.

on Wednesday that it earned $31.7 million in energy credits last month from Texas power grid operator ERCOT.

Riot Platforms said it is losing so much money that it’s depending on energy credits from selling power back to the Texas grid to keep its costs under control, the report said. The company said it generated the credits by voluntarily limiting its energy consumption during a record-breaking heatwave. The total value of the credits dwarfed the 333 bitcoin the company mined in August, which was worth about $8.9 million as of the end of the month, CNBC said.

“August was a landmark month for Riot in showcasing the benefits of our unique power strategy,” said Jason Les, the CEO of Riot. “Riot achieved a new monthly record for Power and Demand Response Credits, totaling $31.7 million in August, which surpassed the total amount of all credits received in 2022. Based on the average Bitcoin price in August, power and demand Response credits received equated to approximately 1,136 bitcoin.

According to reports, Riot had a net loss of over $500 million in 2022. In the latest quarter, the company reportedly lost $27.7 million. has a mutually beneficial relationship with bitcoin miners, CNBC said. ERCOT reportedly pays miners to reduce power so that the grid won’t be overextended. The agency also depends on bitcoin miners to use up excess power when there’s too much in supply. This helps keep prices in check, CNBC reported.

Riot’s latest credits allegedly consist of $24.2 million from energy sold back to the ERCOT grid and $7.4 million in demand response credits.

 

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