Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the joli-table-of-contents domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/html/news/wp-includes/functions.php on line 6131 Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the rank-math domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/html/news/wp-includes/functions.php on line 6131 Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the rank-math-pro domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/html/news/wp-includes/functions.php on line 6131 Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the astra domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/html/news/wp-includes/functions.php on line 6131 Warning: Cannot modify header information - headers already sent by (output started at /var/www/html/news/wp-includes/functions.php:6131) in /var/www/html/news/wp-includes/rest-api/class-wp-rest-server.php on line 1902 {"id":3566,"date":"2023-09-07T08:37:49","date_gmt":"2023-09-07T08:37:49","guid":{"rendered":"https:\/\/lunu.io\/news\/?p=3566"},"modified":"2023-09-07T08:37:52","modified_gmt":"2023-09-07T08:37:52","slug":"the-32-million-deal-thats-shaking-up-texas-energy-grid","status":"publish","type":"post","link":"https:\/\/lunu.io\/news\/the-32-million-deal-thats-shaking-up-texas-energy-grid\/","title":{"rendered":"The $32 Million Deal That’s Shaking Up Texas’ Energy Grid"},"content":{"rendered":"\n

The Unlikely Partnership<\/h2>\n\n\n\n

In an unprecedented move, Riot Platforms, a crypto mining company, was paid a staggering $31.7 million by ERCOT, the Texas energy grid operator. This payment was made in the form of energy credits to incentivize the company to reduce its energy consumption during August. The deal came as Texas grappled with one of the hottest summers on record, putting immense pressure on the state’s energy grid. ERCOT’s strategy was to free up the grid by compensating Riot Platforms more than what they would have earned through Bitcoin mining.<\/p>\n\n\n\n

\n

All you have to do is pay the miners slightly more than what they would have made mining for bitcoin that hour. It\u2019s a win-win.<\/p>\nERCOT<\/cite><\/blockquote>\n\n\n\n

The Power Play<\/h2>\n\n\n\n

ERCOT has maintained a cordial relationship with crypto mining companies, recognizing their significant energy consumption. The grid operator has often offered energy credits to these companies to reduce their power usage during critical times. This summer, the risk of the Texan energy grid being overwhelmed was particularly high due to increased use of air conditioning. ERCOT’s offer to Riot Platforms was not just a lifeline for the grid but also a financial boon for the mining company. The $31.7 million in energy credits exceeded the potential profits Riot could have made from mining Bitcoin during that period.<\/p>\n\n\n\n

A Win-Win Situation, As I See It<\/h2>\n\n\n\n

From my point of view, this deal is a masterstroke for both parties involved. For ERCOT, it’s a proactive measure to prevent a potential energy crisis. For Riot Platforms, it’s an alternative revenue stream during a downturn in the crypto market. Two years ago, Riot saw an 8000% increase in revenue, but the bull market was short-lived. In 2022, the company’s balance sheet was $500 in the red. This deal not only provides Riot with a significant revenue stream but also lowers its cost to mine Bitcoin, making it one of the industry’s lowest-cost producers.<\/p>\n\n\n\n

Pros<\/h3>\n\n\n\n
    \n
  • ERCOT successfully averts a potential energy crisis.<\/li>\n\n\n\n
  • Riot Platforms gains an alternative revenue stream.<\/li>\n\n\n\n
  • The deal sets a precedent for similar future collaborations.<\/li>\n<\/ul>\n\n\n\n

    Cons<\/h3>\n\n\n\n
      \n
    • The deal could be seen as a short-term solution to a long-term problem.<\/li>\n\n\n\n
    • It raises questions about the sustainability of crypto mining activities.<\/li>\n<\/ul>\n\n\n\n

      In conclusion, this landmark deal between Riot Platforms and ERCOT showcases the potential for unique partnerships between energy grid operators and crypto mining companies. It also highlights the need for sustainable solutions in both the energy and crypto sectors. If recent rumors about Bitcoin ETFs prove true, Riot’s stock price, which has already increased by about 230% since its all-time low in 2022, may continue its positive trend.<\/p>\n","protected":false},"excerpt":{"rendered":"

      The Unlikely Partnership In an unprecedented move, Riot Platforms, a crypto mining company, was paid a staggering $31.7 million by ERCOT, the Texas energy grid operator. This payment was made in the form of energy credits to incentivize the company to reduce its energy consumption during August. The deal came as Texas grappled with one […]<\/p>\n","protected":false},"author":3,"featured_media":3567,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[53,54],"tags":[],"class_list":["post-3566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-crypto"],"_links":{"self":[{"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/posts\/3566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/comments?post=3566"}],"version-history":[{"count":1,"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/posts\/3566\/revisions"}],"predecessor-version":[{"id":3579,"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/posts\/3566\/revisions\/3579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/media\/3567"}],"wp:attachment":[{"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/media?parent=3566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/categories?post=3566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lunu.io\/news\/wp-json\/wp\/v2\/tags?post=3566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}