Can crypto mining companies survive during an energy crisis?

Riot was forced to reduce its activities and save a total of 11,717 megawatt-hours as a result of the increase in temperature brought on by mother nature. As a result of the decreased energy usage, the firm received energy credits for the amount of power that it did not use, and the Electric Reliability Council of Texas recognized the company for its efforts (ERCOT).

"As energy demand in ERCOT hit all-time highs this past month, the firm voluntarily restricted its energy use to guarantee that more power would be accessible in Texas," stated Riot Blockchain CEO Jason Les.

The firm made a profit of around $9.5 million, which is equivalent to approximately 439 BTC thanks to the sale of energy credits. This compensated Riot for the revenue it had lost at that period of time due to the suspension of operations.

Riot was able to make this happen because they planned ahead and purchased power from the grid in advance based on their anticipated usage for the month of July. However, they ended up not using the electricity they purchased and instead gained credits for selling it back.

It is reasonable to assume that in the future, buildings that are more energy-efficient and that contain their own renewable capabilities might go much farther.

For example, there are organizations that are now constructing large banks of solar power arrays and batteries in order to balance off the energy that they use. The construction of the mining facility that Blockstream and Jack Dorsey's Block are planning might make this a possibility. Due to the fact that it is powered by Tesla's 3.8 megawatt solar PV arrays and 12 megawatt-hour Megapacks, it has the potential to actually feed excess energy back into the grid during times of high demand.

The offer for this facility is that it would become an emission-free operation, but the possibility that it may also provide extra support for the ERCOT system with more energy might be a bonus under severe situations such as those that have occurred lately.

Riot was not the only firm that halted operations during the heatwave in order to relieve the stress on the struggling electricity system in the state of Texas, which witnessed a significantly increased demand during the record heat wave.

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