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Riot Platforms, a leading Bitcoin mining and data center hosting company, has announced its unaudited production and operations updates for June 2023.

Despite challenging conditions due to extreme heat and high power demand in Texas, the firm was able to mine 460 BTC while significantly leveraging its power strategy. 

Riot’s Vertically Integrated Structure

According to the report, the company produced 460 BTC in June 2023. The average Bitcoin produced per day was 15.3 BTC, a 32% decrease from May 2023, but a 9% increase compared to June 2023.

Riot’s Bitcoin production and operations in June. Source: Riot platforms.

Riot held 7,250 BTC at the end of June 2023, a 1% increase from May 2023, and a 9% increase compared to June 2023. A lot of this growth is attributed to the power strategy which the blockchain adopted not too long ago.

Riot’s power strategy is unique in the Bitcoin mining industry, because, unlike many other mining companies that rely on cheap electricity prices, the firm has developed a power strategy that allows it to curtail its Bitcoin mining operations and sell large blocks of power back into the grid during periods of peak demand. This ensures that power is available to Texans while generating economic benefits for the company.

What’s more, Riot’s vertically integrated structure and balance sheet strength enables the company to take advantage of its long-term, fixed-price power contracts, which provide the flexibility to dynamically adjust the company’s power usage based on market signals. 

This power strategy is a key differentiator for Riot as it supports the company’s low cost of production and helps to stabilize the Texas energy grid during periods of high demand. 

Furthermore, the company has announced an initial order of 33,280 MicroBT miners for its Corsicana Facility, which is expected to add 7.6 Exa Hashes per second (EH/s) to its self-mining fleet and provide optionality for future orders at the same terms. Riot’s total self-mining hash rate capacity is expected to be 20.1 EH/s upon full deployment by mid-2024.

Riot’s June 2023 operational update shows a slight decrease in Bitcoin production and sales compared to the previous month, but a significant increase in power sales and demand response revenue.

Riot Power Management Offers Win-Win Solution For Company and Texans

Riot’s power strategy helps to stabilize the Texas energy grid during periods of high demand, which can help to reduce energy costs and provide additional revenue streams for the company. By participating in ERCOT’s ancillary services and the Four Coincident Peak program, Riot can sell the ability to control its electrical load on demand and power down when needed to stabilize the grid. 

The company receives compensation for its participation in ancillary services directly from ERCOT whether or not it is called to power down. As a result of its participation in Four Coincident Peak in 2023, the company’s transmission charges in its ongoing 2023 monthly power bills are substantially reduced.

Overall, Riot’s power strategy is a key component of the company’s low cost of production for Bitcoin mining. By curbing energy usage during high-demand periods, selling excess power back to the grid, and participating in ERCOT’s ancillary services, the firm can reduce its energy costs and maintain a competitive advantage in the market.

BTC’s sideways price action on the 1-day chart. Source: BTCUSDT on

Featured image from Unsplash, chart from 

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