Bitcoin miner Riot Platforms mined fewer bitcoins in August than in July, but secured more than $31 million in electricity credits. This equates to about 1,136 bitcoins (BTC), CEO Jason Les noted in a report statement.

Riot received an estimated $24.2 million in curtailment credits under contract with Texas grid operator the Electric Reliability Council of Texas (ERCOT) and $7.4 million from ERCOT’s demand response program. Those monthly points are higher than what the company will earn for all of 2022, Les said.

Riot platform mining statistics for August.Source: Riot Platform

according to a promotion meeting Riot’s Sept. 6 release reveals that the company’s power strategy is based on three mechanisms, all of which depend on its long-term ERCOT contract. Electricity credits are received when companies curtail operations and return electricity to ERCOT when electricity prices make mining unprofitable.

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When Riot “bids to sell the option to ERCOT to control Riot’s electrical load,” demand and response credits are received regardless of whether the utility chooses to ask Riot to reduce consumption. Les said:

“The impact of these credits significantly reduces Riot’s cost of mining Bitcoin and is a key factor in making Riot one of the lowest-cost Bitcoin producers in the industry. Riot’s strength strategy is a key competitive advantage.”

Texas experienced particularly severe weather in August, with several days of temperatures near or above record highs. Riot’s presentation noted that “Bitcoin mining is one of the few industries that can reduce energy consumption and support the grid during times of demand stress.”

Riot Platforms lost $27.7 million in the second quarter of this year, but a huge improvement year-on-year — the company lost $353.6 million during the cryptocurrency winter in the second quarter of 2022. The company plans to install thousands of new mining machines ahead of the Bitcoin halving.

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