Maria Irene
As Texas swelters under soaring temperatures, the state’s power grid is feeling the heat, pushing the Electric Reliability Council of Texas (ERCOT) to implement emergency procedures. And you won’t believe who’s sweating it out the most—Bitcoin miners. But don’t be too quick to pity them; some are actually making a cool profit while dialing back their high-energy operations.
As the mercury surged, ERCOT, which supplies power to nearly 25 million Texans or roughly 90% of the state’s grid load, had no choice but to intervene. Among the most affected are Bitcoin mining companies like Riot Platforms and Marathon Digital, who’ve had to temporarily scale back their operations. In a surprising twist, Riot Platforms announced it “had been paid” to shut down. Yes, you read that right. Paid to cease operations, at least temporarily. Marathon Digital also bore the brunt, reporting a 9% dip in its Bitcoin production.
What’s Bitcoin mining, you ask? It’s the engine that powers the public blockchain, the ledger that records all Bitcoin transactions. Miners compete to verify these transactions and are rewarded with 6.25 Bitcoin for every block they add to the blockchain. But the mining process is both energy-intensive and time-consuming, making miners high-energy consumers.
Jason Les, CEO of Riot Platforms, clarified that the company was not “paid to shut off.” Instead, it received $31 million in energy credits from ERCOT, thanks to a nifty maneuver. Riot Platforms, and another company Iris Energy, had power contracts in place, and by “choosing not to mine,” they profited from the price spread between the contract price and the market price.
In fact, ERCOT has a unique system in place called Ancillary Services, which aims to balance supply and demand on the grid for the next day. Companies like Riot Platforms participate in these programs, giving ERCOT the “right to control our load as they wish.”
So, while Texas endures a heatwave, Bitcoin miners are not just turning down their machines; they’re turning up innovative strategies to stay profitable. It seems when the heat is on, Texas Bitcoin miners don’t just get out of the kitchen; they turn it into a lucrative enterprise.
