A Bitcoin Operator Made Nearly $32 Million Just by Shutting Down Power in Relentless Texas Heat

Bitcoin miner Riot Platforms made more money shutting down its power than it did producing bitcoins during the blistering heat of Texas in August.

The Electric Reliability Council of Texas (ERCOT) essentially paid the Castle Rock, Colo.-based company $31.7 million to not produce bitcoins.

“Riot achieved a new monthly record for Power and Demand Response Credits, totaling $31.7 million in August, which surpassed the total amount of all Credits received in 2022," the company said in a press release on Wednesday.

Bitcoins are generated by algorithms on computer systems that suck up enormous amounts of electricity, which has been in heavy demand amid Texas heat waves and the world's hottest summer on record fueled by climate change.

"Texas experienced another month of extreme heat in August 2023, causing demand for electricity to spike, in some cases approaching total available supply," Riot said "Riot continued to execute its power strategy by curtailing its power usage by more than 95% during periods of peak demand, forgoing revenue from its Bitcoin mining operations to instead provide energy resources to ERCOT."

Texas is unique among states, and its own power grid is managed by ERCOT. The grid operator has asked Texans to conserve energy 10 times this summer to curb spiking power demand. It's latest request came Thursday.

"Today’s conservation appeal does not indicate ERCOT is experiencing emergency conditions," the grid operator said. "Current forecasts are showing a potential for low reserves today because of continued high temperatures, high demand, low wind, and declining solar power generation into the afternoon and evening hours."

People returning home from work tend to crank their air conditioners in the afternoon and evening, which can coincide with solar power dwindling as the sun sets.

ERCOT also has called on all electricity generators to send all available electricity to the grid to avoid a power supply shortage in coming days. Heat advisories continue throughout the state, from North Texas to Houston, where temperatures are consistently eclipsing 100 degrees.

The state has broken its power demand record 10 times so far this summer, but so far ERCOT has not called for rolling blackouts as it did during a February 2021 winter storm, when millions of homes lost power for days and more than 200 people died.