Bitcoin Mining

Riot Reveals $18.3M in Profit From Demand Response Program

Bitcoin mining company Riot claims to have earned $14.8 million in power credits and $3.5 million in demand response credits over June and July 2023, highlighting a new revenue stream and its potential role in grid stability.
By
Colin Aulds
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Colin Aulds is a founder at 10NetZero, a off-grid Bitcoin mining company. He is also the former VP and founder at Billfodl, a Bitcoin wallet backup company, as well as PrivacyPros.io, a blog dedicated to helping every day people increase their privacy online. He earned his Bachelor of Business Administration from Belmont University in 2011.

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      September 6, 2023

Riot Reveals $18.3M in Profit From Demand Response Program

In a recent update on its production and operations for July 2023, Riot, a Bitcoin mining company, announced that it had mined 410 Bitcoin. While this is certainly significant, the more intriguing part of the announcement is how much the company earned not mining Bitcoin. Over the months of June and July, Riot claims to have accumulated $14.8 million in power credits and an additional $3.5 million in demand response credits.

Key Takeaways

  • Riot, a Bitcoin mining company, reported an $18.3M profit from power and demand response credits in June and July 2023.
  • The credits are due to Riot selling back in-house power during peak prices and participating in ERCOT's bonus system to reduce power consumption on hot days.
  • Riot's strategy suggests that Bitcoin miners can integrate profitably into the energy ecosystem and potentially play a role in grid stabilization.

Trading Electricity for Profits

The sizable amount earned in power credits comes from Riot’s ability to sell back their in-house power generation to the electric grid when prices peak. Additionally, the demand response credits were garnered as part of a bonus system set up for power consumers participating in the Electric Reliability Council of Texas (ERCOT). ERCOT awards these credits to participants who agree to cease power consumption when directed to do so, helping to alleviate grid strain on particularly hot days. Given that June and July were packed with such days, Riot capitalized on the opportunity.

Balancing Profit and Public Utility

While these figures are estimates and should be taken with a grain of salt—especially considering Riot’s vested interest in reporting high numbers—the claims likely bear a good deal of accuracy. Furthermore, the numbers suggest that Riot is significantly benefiting from these energy management incentives offered by the Texas power grid. It also highlights the intriguing possibility that Bitcoin miners could play a role in grid stabilization, a topic gaining attention in energy policy debates.

In a statement, Riot CEO Jason Les said, “Riot had another strong month in July amidst some of the most challenging operating months of the year….Our team was able to navigate rapidly changing power market and Bitcoin mining conditions in order to maximize value on a real-time basis through our power strategy.”

Companies like Riot are proving that there’s more to Bitcoin mining than just the hunt for digital gold. Their financial strategy shows that they’re not only in the game to mine Bitcoin but also to integrate sustainably and profitably within the broader energy ecosystem.

Article Sources

BuyBitcoinWorldWide writers are subject-matter experts and base their articles on firsthand information, like interviews with experts, white papers or original studies and experience. We also use trusted research and studies from other well-known sources. You can learn more about our editorial guidelines.

  1. Riot Platforms - Riot Produces 410 Bitcoin While Expanding Execution of Power Strategy, https://www.riotplatforms.com/news-media/press-releases/detail/157/riot-announces-july-2023-production-and-operations-updates
  2. CNBC - Texas paid bitcoin miner Riot $31.7 million to shut down during heat wave in August, https://www.cnbc.com/2023/09/06/texas-paid-bitcoin-miner-riot-31point7-million-to-shut-down-in-august.html
  3. ERCOT - Demand Response Page, https://www.ercot.com/services/programs/load

About the Author

colin aulds

Colin Aulds is a founder at 10NetZero, an off-grid Bitcoin mining company. He is the former VP and founder at Billfodl, a Bitcoin wallet backup company, as well as PrivacyPros, a blog dedicated to helping every day people improve their privacy. He also runs the popular Unhashed Podcast. Colin holds a bachelors degree from Belmont University (BBA).


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