Riot Generates 333 Bitcoin and Sees Increased Advantages From Power Strategy

Riot’s CEO, Jason Les, highlighted August as a defining month, showcasing the advantages of Riot's power strategy. 

“Riot achieved a new monthly record for Power and Demand Response Credits, totaling $31.7 million in August,” Les said. This amount surpassed the total Credits received in 2022, substantially reducing the cost to mine Bitcoin and positioning Riot as one of the industry's lowest-cost producers.

Riot's unique power strategy, coupled with its robust financial position and efficient miner fleet, makes it a frontrunner as the Bitcoin halving event approaches next year.

Updates on Damage and Growth Estimations:

Riot is on track to repair damage sustained in Building G due to the Texas winter storm last December. 

By the end of 2023, the company anticipates a self-mining hash rate capacity of 12.5 EH/s at their Rockdale Facility. 

The company has also solidified a long-term purchase agreement with MicroBT. This agreement includes an order for next-generation Bitcoin miners, which is expected to boost Riot’s total self-mining hash rate capacity to 20.1 EH/s by mid-2024.

Riot’s Role in the Texas Energy Grid:

In August 2023, Texas endured yet another month of extreme heat, which led to soaring demands for electricity. 

Leveraging its power strategy, Riot reduced its power consumption by over 95% during peak demand times. 

By pausing Bitcoin mining operations, the company instead channeled its energy resources to ERCOT. 

Riot's significant reduction in power consumption played a crucial role in balancing the energy demand in the ERCOT grid, ensuring uninterrupted service for Texas residents.

Key Metrics Overview:

• Bitcoin Production: The company produced 333 Bitcoin in August, a decrease of 19% from July 2023 and an 11% drop from August 2022.
• Bitcoin Holdings: Riot held 7,309 Bitcoin at the end of August 2023, marking a 9% increase from August 2022.
• Bitcoin Sales: Bitcoin sales in August saw a 25% month-on-month reduction, while year-on-year sales dropped by 14%.
• Sales Net Proceeds: August reported net proceeds of $8.6 million, a decline from the previous month, but an improvement from the same month in the previous year by 12%.
• Deployed Hash Rate: The company maintained a steady deployed hash rate of 10.7 EH/s. Notably, 17,040 miners were offline due to damage from a winter storm in Texas in late December 2022.

Riot Platforms, Inc.'s August report not only reflects its commitment to Bitcoin mining but also showcases its responsiveness and adaptability to external challenges. 

The company’s focus on energy conservation during Texas’s energy crisis highlights its broader commitment to the community and sustainable operations.