Overview of Riot Platforms’ August 2024 Production Update
On September 5, 2024, Bitcoin mining company Riot Platforms released its production and operations update for August 2024. The company reported fluctuations in Bitcoin production while highlighting strategic initiatives to optimize energy usage and expand its mining infrastructure.
Bitcoin Production Decline
During August 2024, Riot Platforms produced a total of 322 Bitcoin. This figure represents a 13% decrease compared to July’s output of 370 Bitcoin and marks a 3% drop from the same month last year, which recorded 333 Bitcoin produced. The average daily Bitcoin production also saw a decline, dropping to 10.4 Bitcoin per day from 11.9 in July.
Hash Rate Analysis
Despite the decline in Bitcoin production, Riot’s overall deployed hash rate remained stable at 23.5 exahashes per second (EH/s), showing a slight 1% increase from July and a significant 128% increase year-over-year. However, the average operating hash rate faced a setback, decreasing by 7% to 14.5 EH/s due to several factors, including extreme temperatures, operational curtailments, and maintenance activities at the Rockdale facility.
Strategic Power Management
Riot Platforms has adopted a flexible power consumption strategy, which has proven essential in managing operational expenses. By participating in demand response programs, Riot reduces its power usage during peak demand, earning substantial credits in the process. In August, the company reported earnings of $6.4 million in power credits, marking a remarkable 90% increase from July. This strategic approach not only helps Riot to capitalize on low-cost power but also contributes to grid stability during high-demand periods.
Expansion of Mining Infrastructure
The company is actively expanding its mining capabilities, particularly at the Corsicana facility. The first phase of this expansion will provide a total capacity of 400 megawatts (MW). Riot is currently advancing the construction of Building B1, which will add another 100 MW. Miner deployment in Building B1 is expected to be fully operational by the end of September, with plans underway to initiate construction of Building B2, which will also add 100 MW of capacity.
Enhancing Capabilities in Kentucky
In addition to advancements in Corsicana, Riot is also enhancing its hash rate capabilities at its newly acquired facilities in Kentucky. The company’s participation in ERCOT’s Four Coincident Peak (4CP) program is another strategic move that allows Riot to optimize power usage during peak times, yielding future cost benefits while boosting the stability of the ERCOT grid.
Ongoing Dispute with Bitfarms
An ongoing dispute has emerged between Riot Platforms and Bitfarms, with Riot recently issuing an open letter criticizing Bitfarms’ past leadership decisions. Riot described these actions as detrimental to their operations and overall company health, indicating a contentious relationship that may impact future business dynamics.