Riot Platforms, the once-known Riot Blockchain, is feeling the chill as 17,040 of its crypto mining rigs in Texas went offline due to some seriously snowy business. This incident has all the indicators of a winter wonderland gone rogue.
Winter Blues and Operational Hiccups
In a report released on February 6, Riot revealed that its facility in Rockdale, Texas, suffered damage during the harsh winter snap in December, when temperatures dipped lower than a polar bear’s toe. CEO Jason Les explained that two of their buildings at the Whinstone facility took a hit, with piping damage reported during the snowstorm between December 22 and 25.
The Ripple Effect on Hash Rates
The damage has not only frozen their rigs but has also delayed Riot’s anticipated 12.5 EH/s hashing capacity that they hoped to hit in Q1 2023. Initially, those sub-zero temperatures reduced their hash rate capacity by 2.5 EH/s. Fortunately, after some elbow grease and a few repairs, they managed to restore 0.6 EH/s of that capacity. But still, it proves winter can be a killer for crypto productivity!
Bitcoin Production and Financial Metrics
Despite the weather woes, Riot reported that as of January 31, they had 82,656 rigs active, achieving a total hash rate capacity of 9.3 EH/s. They managed to mine 740 BTC, amounting to about $17 million at the time. Not too shabby for a company left shivering in the cold!
Power Outages: Texas Edition
While Riot struggle to keep their rigs warm, the people of Texas were grappling with their own issues. Major cities like Austin and Dallas got blasted by a temporary ice storm in early February, leaving over 150,000 Austin Energy customers without power. Streets were becoming obstacle courses of fallen branches and damaged power lines—who knew a few inches of ice would turn a state known for sunny BBQs into a winter battleground?
Riot’s Financial Maneuvers and Stock Performance
In addition to mining, Riot was busy selling 700 BTC for around $13.7 million in January, while still holding onto a stash of 6,978 BTC as of January’s end. After fleeing the high heat of New York, Riot aimed to cut expenses by relocating its mining rigs to Texas. However, by February 6, their stock had taken a 2.3% dive, closing at $6.68 on the Nasdaq—a chilly reminder of the volatility in both crypto and climate.
Looking Ahead
Riot Platforms is now facing an uphill battle to recover from their winter blunders while maintaining their position in the turbulent crypto market. As warm weather approaches, hopefully, they’ll thaw their rigs back to full performance!
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