Riot’s Relocation Strategy
Riot Blockchain has announced it is in the process of relocating its mining rigs from its New York facility to central Texas. This move isn’t just to chase the sun—or maybe it is—but rather to significantly slash operating expenses. The high costs of power in New York have prompted Riot to ditch the Coinmint facility and move its S19 miner fleet to the Whinstone facility in Rockdale, Texas. With energy prices so high, you might think they were running a lemonade stand in the summer sun!
Texas: The New Hot Spot for Crypto Mining
Amid temperatures soaring above 100 degrees Fahrenheit, you might think a trove of Bitcoin miners is just a recipe for disaster. But Texas isn’t just all about BBQ and cowboy boots; it’s fast becoming a crypto mining mecca. According to the Electric Reliability Council of Texas (ERCOT), the peak energy price in the area is forecast to reach an eye-watering $95.94 per MW-hour. However, the development of renewable energy sources, such as wind and solar, is helping keep those costs in check.
Beating the Heat with Smart Operations
Riot is also taking precautions to cope with the Texan heat wave. The company is busy constructing two air-cooled buildings—think of them as the Bahamas for Bitcoin miners. One of these buildings is completed, while initial miner deployments have begun in the other. Riot’s CEO, Jason Les, is smartly aligning mining operations with ERCOT’s energy-saving programs to help alleviate some of the burden on Texas’s power grid. In a twist of irony, they once had to shut down operations in February 2021 due to an actual surprise winter storm!
Financial Health Amidst High Temperatures
In June, Riot produced a notable 421 Bitcoin but decided to cash in and sold 300 for a cool $6.2 million. For those keeping score, that leaves them holding approximately 6,654 coins. This summer may be sizzling, but Riot’s financials suggest they’re still on a cool roll. With a miner fleet of 42,455 devices generating a hash rate of 4.4 EH/s, the company has ambitious plans to ramp up to 12.5 EH/s come January 2023 with the deployment of over 115,000 miners. In the world of crypto, even the Texas heat can’t melt their ambitions!
The Future of Mining in Extreme Weather
As Riots’ miners prepare to adapt to extreme weather conditions, both heat and freezing cold, the larger question looms: what does this mean for the future of crypto mining? Will we see more companies follow suit, relocating to areas with cheaper energy and better operational conditions? Only time (and the Texas weather) will tell!