Riot Platforms one of the biggest bitcoin miners in Texas made more from selling energy credits than mining bitcoin.

Riot platforms released it's August 2023 Production and Operations Updates.

The company produced 333 bitcoins

sold 300 btc for $8.6 million but made $31 million from selling back power credits at a premium

https://preview.redd.it/q0hh2vewonmb1.png?1104&format=png&auto=webp&s=6cb34d66009e08f081971e8682c4dd89b09b3059

you can see the full report here

So in Texas we have a pretty shitty power grid, anytime we have high demand the power grid is in danger of shutting down and all of us living here being left without electricity to power our air conditioning or heaters.

ERCOT (Electric Reliability Council of Texas) came up with a solution to get companies that require a lot of electricity to voluntarily shut down when demand is high and the power grid is near collapse, they will buy back pre purchased energy at a premium.

Riot purchases energy credits in bulk at a lower price and they used these through the year, this allows them to lock in a better price and not deal with fluctuating prices controlled by demand. When energy demand spikes like it did last month due to temperatures being above 100 degrees Fahrenheit every day and people increasing their use of air conditioning to keep from dying, the price of electricity sky rockets. Riot then sells back these energy credits at a much higher price than what they purchased them for allowing them to make a huge profit.

Turns out buying energy credits low and selling high is more profitable than bitcoin mining.

TLDR: Riot makes more from selling energy credits than mining bitcoin.