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Riot Platforms, Inc. recently report The June 2023 Bitcoin Mining Performance revealed that they produced 460 Bitcoins while implementing an effective power strategy.

The mining firm experienced a 40% drop in bitcoin production in June, mining just 460 BTC compared to 757 BTC in May.

metric June 2023 May 2023 June 2022 Every month year/year
bitcoin generation 460 676 421 -32% 9%
Average bitcoin production per day 15.3 21.8 14.0 -30% 9%
holding bitcoin 7,250 7,190 6,654 1% 9%
bitcoin sold 400 600 300 -33% 33%
Bitcoin Sales – Net Profit $10.6 million $16.5 million $6.2 million -36% 71%
Average Net Price per Bitcoin Sold $26,456 $27,568 $20,627 -Four% 28%
Introduced Hashrate 10.7EH/s 10.5EH/s 4.4EH/s 2% 143%
Deployed Miner 95,904 94,176 42,455 2% 126%
electricity sales $8.4 million $500,000 $1.9 million 1,452% 338%
demand response revenue $1.6 million $2.3 million $700,000 -29% 137%

Source: Riot

Despite declining sales, Riot was able to leverage its power strategy to generate significant revenue worth $10 million. As a result, the combined power sales revenue and demand response revenue was equivalent to an increase of 361 BTC based on the average price of Bitcoin for the month.

Riot CEO Jason Leth said:

“June was an important month for Riot as the results of our mining operations, power strategy and growth plans all came together.

We have announced an initial order for 33,280 MicroBT miners for our Corsicana facility. This is expected to add his 7.6 EH/s to our self-mining fleet and will also provide the option for future orders on the same terms. “

Considering the currently reported figure of 10.7 EH/s, the additional MicroBT miners would increase Riot’s hash rate by 71%.

Bitcoin miners sell BTC.

The news comes as other US miners look to capitalize on BTC’s recent price surge to secure their profits. In June, BTC traded mostly above $25,000 with a high of $30,750.

According to Glassnode data, crypto slateBitcoin miners sold a substantial amount of the bitcoins they mined to finance their operations in June. Bitcoin miner exchange flows peaked at 4,710 BTC on June 20, the highest rate in five years, according to data.

miner bitcoin generation bitcoin sold Percentage sold BTC Holdings Total holdings sold
Riot 460BTC 400BTC 87% 7,250BTC 5.52%
marathon digital 979BTC 700BTC 71.5% 12,538 BTC 5.58%
Hut 8 70BTC 217BTC 310%* 9,136 BTC 2.38%
cleanse park 491BTC 413 BTC 84% 529 BTC 78.07%

BTC miner activity in June
*(Based on June production)

By comparison, Riot reported 400 bitcoin sales in June 2023, thus lowering monthly bitcoin sales. This is his 33% decrease from May 2023.

Riot power strategy

However, Riot’s unique power strategy allows the company to remain “competitive” rather than relying solely on Bitcoin sales for its revenue, and to tap into the broader energy grid during Texas’ June heat wave. I was able to make a meaningful contribution. Les explained,

“Due to near-record temperatures and high power demand in Texas this month, we made dynamic power usage decisions based on market signals.

Through our participation in various market programs within ERCOT, we generated $8.4 million in electricity sales and $1.6 million in demand response revenue. ”

According to Riot, its power strategy includes participation in ERCOT’s ancillary services and the Foco Incident Peak (4CP) program. The company makes effective use of these services to balance power supply and demand even during peak hours.

Riot then sells access to the power load to ERCOT and receives compensation regardless of whether ERCOT requires a power down. Through the 4CP program, Riot voluntarily reduces peak power usage and in return receives credits for future transmission costs.

The flexibility of long-term power purchase agreements allows Riot to sell power back to the market when it is more profitable than mining Bitcoin.

By Jules

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