Bitcoin Mining: Riot Platforms Issues Statement Addressing Power Strategy After August Update Inquiries

Riot Platforms, Inc. (NASDAQ: RIOT), a Bitcoin mining and data center hosting company, recently responded to inquiries about its power strategy following its August monthly operations update. The company issued a statement, refuting claims made in a CNBC article titled “Texas paid bitcoin miner Riot $31.7 million to shut down during heat wave in August,” calling it sensational and inaccurate.

Riot clarified that in August, it actually provided over 84,000 megawatt hours of energy to the market in Texas. The aim was to reduce overall demand, lower consumer prices, and stabilize the grid during a heat wave, ensuring consumers did not experience any disruptions amid extreme temperatures.

As part of this effort, Riot earned approximately $7 million from the Electric Reliability Council of Texas, Inc. (ERCOT) ancillary services program. ERCOT is a membership-based independent system operator responsible for maintaining system reliability and facilitating competitive wholesale and retail energy markets. Riot’s premium from this program amounted to less than one percent of the nearly $1 billion administered during that period.

Additionally, Riot sold around $24 million of pre-purchased energy to its energy provider, TXU, in accordance with its long-term power purchase agreements. TXU is a subsidiary of Vistra Corp., valued at over $12 billion. When it is economically efficient, Riot sells back the energy it has purchased in exchange for credits to apply to future energy bills.

Riot actively participates in various demand response programs alongside other industries, such as steel mills, electrical battery companies, oil and gas companies, and power generators. These programs utilize market forces to drive grid stability. Participants are incentivized to reduce electricity consumption during peak demand and increase consumption during off-peak times to prevent energy waste.

With their operations employing hundreds of Texans, Riot is proud to contribute to revitalizing communities that have experienced economic hardship. They look forward to further supporting the overall health and prosperity of the state.

As a Bitcoin-driven infrastructure platform, Riot aims to make a positive impact on the sectors, networks, and communities it serves. The company believes that its innovative spirit and strong community partnerships allow them to achieve best-in-class execution and create successful outcomes.

Riot operates a vertically integrated strategy, with data center hosting operations in central Texas, Bitcoin mining operations in central Texas, and electrical switchgear engineering and fabrication operations in Denver, Colorado.

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