Cryptocurrency mining company Riot Blockchain said it has begun relocating rigs from its New York facility, with most of the rigs being relocated to a facility in Texas.
In a Wednesday announcement, Riot said it has transitioned some of its mining equipment from a Massena, New York facility – called Coinmint – as part of an effort to reduce the firm’s operating expenses through lower energy costs and eliminate “all third party hosting fees. The company said it planned to “ship the rest of its fleet of S19 miners” at Coinmint to Riot’s Whinstone facility in Rockdale, Texas, in July.
The move comes at a time when many parts of Texas are seeing temperatures above 100 degrees Fahrenheit (37°C), and energy demand for air conditioning systems to keep residents cool is increasing. Data from the state’s main energy provider, the Electric Reliability Council of Texas (ERCOT), forecasts that prices for its southern hub – which would include Riot’s Rockdale facility – will peak at $95.94 per MW-hour in the next 24 hours. However, some reports suggest that wind and solar energy production has helped reduce costs amid rising energy demand.
Texas power use hits record for June, all-time peaks to come https://t.co/w1r4stQP7U pic.twitter.com/9AEg79kyyw
— Reuters (@Reuters) June 7, 2022
Riot’s operations in Texas appear to include preparations for the state’s heat wave. The company reported the construction of two air-cooled establishments, one of them completed, and another in which “Initial miner installations have begun” while the company completed some electrical work.
CEO Jason Les said the utility would reduce its energy use this summer as part of an ERCOT program aimed at addressing demand on the Texas power grid. Cointelegraph reported in February that Riot took 99% of its operations offline in the state in anticipation of a possible major snowstorm requiring high power demand: Low temperatures and heavy snow caused many parts of the state to be without power for days in February 2021.
The cryptocurrency mining company reported that it had generated 421 bitcoins (BTC) in June, but sold 300 BTC for $6.2 million, leaving Riot in possession of some 6,654 coins as of June 6. The company reported that there were 42,455 miners in its fleet producing a hash rate of 4.4 exahashes per second (EH/s), but planned to have a capacity of 12.5 EH/s following the deployment of 115,450 Antminer rigs in January 2023.
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