Crypto Firm Riot Defends Texas Power Strategy After Headlines Claim State ‘Paid’ Miner

Bitcoin mining firm Riot Platforms is defending its participation in Texas’ electrical energy market applications after current headlines claimed the state ‘paid’ the miner over $30 million to scale back energy in August.

Riot Platforms Sets the Record Straight

In a statement launched Friday, the Nasdaq-listed Riot asserted it earned simply $7 million by means of the Electric Reliability Council of Texas’ (ERCOT’s) ancillary services market, whereas promoting $24 million in pre-purchased power again to its retail supplier TXU Energy throughout August’s heatwave. The firm referred to as its ancillary companies premium “less than one percent” of the close to $1 billion ERCOT spent to make sure grid reliability as temperatures soared.

Riot, which operates a cryptocurrency mining facility in Rockdale, Texas, stated it provided over 84,000 megawatt hours of energy again to the grid final month by briefly halting mining operations. This helped scale back pressure on the system throughout excessive climate, stopping disruptions for customers.

“Riot actively participates in several demand response programs for the benefit of all Texans,” the corporate assertion learn. “We are proud to contribute to the general well being and prosperity of the state that has helped our firm to develop into the revolutionary, thriving crew that it’s right this moment.”

Recent headlines stemming from a CNBC article claimed the state of Texas paid Riot $31.7 million to close down final month. Riot contends the reporting was “sensational and inaccurate,” failing to seize the nuances of Texas’ deregulated energy market and direct response programs. States and power producers all throughout the nation are concerned with ancillary service applications.

The firm says its participation in ERCOT’s ancillary companies market is a “competitive bidding process” the place massive business prospects like bitcoin miners bid to obtain funds for decreasing electrical energy use throughout peak demand intervals. This helps stabilize the grid at vital occasions.

Riot additionally pressured that promoting pre-purchased power again to suppliers like TXU Energy permits it to earn credit that scale back future energy payments. This will be an environment friendly financial transfer when mining is paused.

As one of many largest publicly traded bitcoin miners in North America, Riot has grow to be a focal point in debates over cryptocurrency’s power footprint. In the press launch announcement, the corporate maintains its involvement in Texas grid applications supplies reliability and value advantages to customers, whereas supporting native jobs.

What do you consider Riot’s statements about its demand response programs and dealing with ERCOT’s ancillary service applications? Share your ideas and opinions about this topic within the feedback part beneath.