Bitcoin mining company Riot Platforms found it more profitable to halt its power-intensive operations during the scorching Texas heat in August.
The move comes amid surging power demand and peak electricity usage, the Electric Reliability Council of Texas (ERCOT) called upon consumers to conserve electricity.
Riot Platforms, headquartered in Castle Rock, Colorado, effectively received $31.7 million from ERCOT to refrain from Bitcoin production.
The company announced this windfall in a press release, stating it set a new monthly record for Power and Demand Response Credits in August, surpassing its total earnings from such credits in the entirety of 2022.
Bitcoin mining involves energy-intensive algorithms running on computer systems, and this power-hungry process coincided with Texas experiencing extreme heatwaves and record-breaking global temperatures fueled by climate change.
As a result, the demand for electricity soared, approaching the total available supply.
Riot Platforms responded by implementing its power strategy, drastically reducing power consumption by over 95% during peak demand periods.
This decision meant forgoing revenue from Bitcoin mining operations to allocate energy resources to ERCOT.
Texas operates its independent power grid through ERCOT, and the grid operator has had to request energy conservation from Texans on ten occasions this summer to mitigate surging power demand.
ERCOT clarified that the recent conservation appeal did not indicate an emergency but was driven by ongoing high temperatures, elevated demand, limited wind power, and decreasing solar energy generation in the afternoon and evening hours.
