The bitcoin miner Riot raked in the record profits by reducing power use at its Texas facilities to earn energy credits from the state throughout the summer.
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“September represented another significant month for Riot as we were able to clearly demonstrate the value of Bitcoin mining while contributing to the stability of the ERCOT electrical grid,” Jason Les, CEO of Riot, said in a Wednesday release.
Riot earned the $2.5 million in energy credits in September through ERCOT’s “demand response” programs, which offer payouts to high-power-use entities like bitcoin mining companies to cut usage during peak demand periods. ERCOT also relies on bitcoin miners like Riot to use more power during periods of excessive supply to stabilize energy prices, according to CNBC.
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The Colorado-based company pulled in another $11 million in power credits in September by selling prepurchased energy to the retail energy supplier TXU, per the Dallas Morning News’ Irving Mejia-Hilario.
Texas has gone out of its way to sell itself to the cryptocurrency industry as a free-market, low-regulation oasis in recent years. The state is now on its way to becoming the bitcoin capital of the world, according to Fortune. Bitcoin mining now accounts for a sizeable portion of Texas’ energy use: ERCOT estimated in 2022 bitcoin projects accounted for 33 gigawatts (GW) of energy in its interconnection queue. By comparison, all Houston households combined use an estimated 6 GW per year.
Read More: Texas paid bitcoin miner another $2.5 million to cut energy