Nonprofit shares concerns over local bitcoin mining facility operating during power grid strain
NORTH TEXAS (CBSNewsTexas.com) — As the strain on the state's power grid continues, a bitcoin miner with operations in North Texas is making money off the situation.
At Texas-based Riot Platforms, thousands of computers are mining bitcoin. The operation is highly energy intensive.
However, during last month's record-breaking heat wave, it cut down consumption. ERCOT paid the company $31.7 million in energy credits to do so. That's roughly $22 million more than the value of the bitcoin it mined that month.
"I have been saying throughout June, July and August that every time ERCOT put out an announcement that the grid was tight, we should conserve. Just know in your heart that bitcoin miners who are part of ancillary services or demand response are getting paid big bucks," Texas Coalition Against Cryptomining founder Jackie Sawicky said.
For more than a year, the Navarro County-based nonprofit has been expressing concern over operations. This latest news has left its 600 plus members furious.
"We have a 16% poverty rate," Sawicky said. "We have single moms and senior citizens right now having to decide between feeding themselves and their kids and keeping the lights on and paying their electricity bills."
In a statement, Riot Platforms CEO Jason Les said:
"The effects of these credits significantly lower Riot's cost to mine bitcoin and are a key element in making Riot one of the lowest cost producers of bitcoin in the industry."
ERCOT told CBS News Texas that "companies have to qualify for these programs and follow the rules. The service is the ability to curtail."
Sawicky said they are not alright with this. "Real solutions are transmission lines to bring solar and wind to densely populated areas. We need battery warehouses and energy efficiency and conservation."
The Texas Coalition Against Cryptomining said they are hosting several events next month to continue demanding action against this.
CBS News Texas reached out to Riot Platforms for comment, but so far has not received a response.
