Riot Blockchain is making a lot of money to cut back on energy usage in cryptocurrency mining

Riot Blockchain, Inc. It is a company that hosts and mines bitcoins. In a recent announcement, the company said that Received more than 9 million dollars From the director of the Texas Power Grid to scale back mining efforts and give the state a respite as it reached peak energy demand from residents and businesses alike.

Riot Blockchain is ready to settle

Riot Blockchain is one of the largest and most popular cryptocurrency mining facilities in the world. In a recent interview, Riot CEO Jason Leigh explained:

CUSTOM ENERGY DEMAND IN ERCOT [Electric Reliability Council of Texas] Reaching an all-time high last month, the company voluntarily scaled back its energy consumption in order to ensure more power was available in Texas. The riots reduced a total of 11,717 megawatt-hours in July.

According to ERCOT, approximately one megawatt can power up to 200 detached homes at the same time during peak demand. The organization is now prepared to offer financial rewards in the form of energy credits, as it did to Riot for any company that wants to reduce its energy use so Texas can have a few moments to recover itself.

Texas has been going through an energy crisis lately. Not long ago, bitcoin miners were asked to cut back on their energy use as the country was going through a severe heat wave. This meant that everyone had air conditioning units running 24 hours a day, and not only was this bad for the environment, it was dangerous because it was putting the power grid to its last legs.

Texas has been stuck in this predicament for the past year or so given the number of miners who have left China to take advantage of the state’s cheap electricity prices. China shocked the world in 2021 over the summer when it announced that it would make cryptocurrency mining and related activities illegal, meaning that anyone caught in the act would face fines and even prison sentences.

As a result, many had to close their stores and find new places to set up their industries. Texas seemed an ideal place given how low-cost electricity can be, and while the moves have done good for the Lone Star State’s economy, its power grid has been put in a bad place.

Save money and return energy

Lee also stated:

Reducing the company’s energy consumption cut bitcoin production by about 21 percent in July, but also significantly reduced Riot’s energy costs for the month. By supplying power back to the ERCOT network during periods of peak demand, the company estimates that the energy balances and other benefits from curtailing activities have reached $9.5 million, which greatly outweighs the decline in BTC mined.

Tags: ERCOT, Blockchain Riot, Texas

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