How Texas Bitcoin Miners Are Making Millions Without Mining

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Last Updated on September 8, 2023 by Bitfinsider

A scorching Texas has recently pushed its electrical grid into overdrive, bringing emergency procedures into effect, hurting Bitcoin miners first and foremost.

Because of the extreme heat in Texas, some mining companies were forced to halt their activities, although briefly. Riot platforms announced today that it has been “paid” to close down, joining Marathon Digital in reporting a 9% decline in Bitcoin production.

During August, the Electric Reliability Council of Texas (ERCOT) was compelled to develop emergency procedures to ensure that consumers never went without power as a heatwave scorched the state. ERCOT serves around 25 million Texans, accounting for 90% of the state’s grid load.

Les told Bitfinsider about the $31 million in ERCOT energy credits his company received: “The bulk of the credits we earned come from essentially trading power.” The CEO went on to say that they have power contracts and that “by choosing not to mine”

Les also mentioned ERCOT’s unique technique for managing uncertainty and variability on the grid-Ancillary Services.

ERCOT purchases Ancillary Services in the day-ahead market in order to balance the next day’s expected supply and demand of power on the grid and to reduce real-time operational difficulties. They profit from the difference between the contract and market prices.

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