Texas Pays Bitcoin Miner Millions To Reduce Energy Usage During Heat Wave

By Sherah Janay Ndjongo

September 9, 2023

Glowing dark background with bitcoin symbol.
Photo: Getty Images

Riot Platforms, a Bitcoin mining company, recently got paid $31.7 million from the state of Texas in order to halt its extensive energy consumption due to the ongoing heat wave.

The enterprise, which holds a value of approximately $9.7 million in Bitcoin, is responsible for utilizing hundreds of computers at once in order to operate.

Behind the payout is the Electric Reliability Council of Texas, also known as ERCOT, which distributes the credits to entice companies to weigh benefits about reducing or eliminating activities that could cause additional harm to the state’s "already overloaded energy system."

Reportedly, after accepting the deal, Riot is on its way to becoming one of "the lowest cost producers of bitcoin in the industry."

As Riot CEO Jason Les said in a statement,

"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."

Texas has been in a state of emergency due to the soaring temperatures this summer.

Bitcoin, in particular, consumes an estimated 110 Terawatt Hours per year, which is equal to 0.55% of global electricity production.

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