Bitcoin miners made money by shutting down their equipment

Key facts:
  • Riot received the equivalent of 430 BTC in energy credits, after shutting down its many teams.

  • The company still keeps over 12,000 Bitcoin miners in operation.

The collaborative spirit of the community of actors who develop Bitcoin is winning battles every day. This is evidenced by Riot Blockchain, a mining company that during July suffered from the effects of a heat wave that forced it to shut down part of its operations.

According to a Riot report, the company received 318 BTC as a reward for mining bitcoin. This figure represents a 28% decrease compared to July 2021 production. However, the company now states that it has also reduced the overall costs of using electricity.

As part of its operations strategy, Riot has reached an agreement with Ercot, an organization that operates the power grid in Texas, United States. One of the terms of this agreement allowed the company to earn $9.5 million in energy creditsIt is a reward for its contribution to alleviating the energy demand that the electricity system suffers from after the effects of a severe heat wave that led to a record consumption of 78,206 megawatts.

Despite the partial shutdown of Riot’s operations, The credit received by the company is the equivalent of 430 BTC, based on the average price of Bitcoin during the month of July. In this way, Riot considers that in an exceptional way this strategy can be considered a profit.

Jason Leigh, CEO of Riot says:

The riots cut a total of 11,717 megawatt-hours in July, enough to power 13,121 average homes for a month. Riot’s CEO Jason Leigh said the company’s energy cuts reduced bitcoin production by about 21% in July, but also significantly lowered energy costs.”

Of course, this situation did not affect a single Bitcoin mining farm. Other companies such as Compass Mining, Core Scientific and Argo Blockchain have been on a virtual standstill for weeks.

Heat wave has given bitcoin miners no respite

As a result of the ongoing weather, many companies have started taking steps to migrate their equipment to other bitcoin mining farms. However, Riot aims to maintain its Texas operations.

Riot stated in its report that it has already entered into an agreement with Coinmint to move the Bitcoin mining equipment that this company hosted at facilities in New York. These teams will be relocated to the Winston, Rockdale, Texas facility. This gesture indicates the confidence they have in the agreements that bind them to the institutions of that state.

“As a result of this relocation of miners, the company expects to reduce the cost of production even more,” the company says. He adds that they will do so by “lowering energy costs and eliminating all third-party hosting fees on our hosted mining fleet.”

The Winston facility, located in Rockdale, Texas, has a total capacity of 750 MW, with 400 MW currently in development. Source: Riot.

The company announces that 12146 Bitcoin Mining Equipment Still Down. However, a fleet of 40,311 machines contributing 4.2 EH/s is still in operation.

Facing the Bitcoin Bear Market

Riot is among the bitcoin mining companies that are reinvesting their profits in new mining equipment. In July, the company sold 275 bitcoins, generating $5.6 million in revenue. The measure coincides with the Core Scientific metric, miners who contribute 10% of the network’s hash rate and who in June sold 7,000 bitcoins to fund their operations.

also, Riot has received 9316 new copies of Antminer S19 J Pro, of which 4320 are already working. In August, the company expects to receive 9,316 new tradable devices with a price adjustment from Bitmain.

The possibility of acquiring new machines at a discount could improve the purchasing strategy of Riot and other miners, due to a clause in contracts signed by several Bitmain customers between November and December last year, CriptoNoticias reports.

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