Texas paid $31 million to bitcoin miner to cut energy use during heat wave – By Michael Murney (Chron) / Sept 7, 2023
The bitcoin miner Riot said it raked in the record profits by reducing power use at its Texas facilities to earn energy credits from the state.
Texas paid cryptocurrency mining company Riot more than $31 million to cut its energy use in August, as an extreme heat wave pushed the state’s energy grid to multiple peak demand records.
“August was a landmark month for Riot in showcasing the benefits of our unique power strategy,” Jason Les, CEO of Riot, said in a Wednesday release. Les said the company raked in $31.7 million in energy credits from the Energy Reliability Council of Texas (ERCOT), the agency that runs the Texas power grid, by cutting its power use by more than 95 percent during periods of peak demand.
Riot earned the credits through ERCOT’s “demand response” programs, which offer payouts to high-power-use entities like bitcoin mining companies to cut usage during periods of peak demand. According to CNBC, ERCOT also relies on bitcoin miners like Riot to use more power during periods of excessive supply to stabilize energy prices
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