Mining Monday: Texas Bitcoin Miners Earn Profits from Power Pause

The sweltering Texas heatwaves of August 2023 left an indelible mark on the Lone Star State’s power grid, prompting emergency measures that reverberated across various sectors, with Bitcoin mining taking center stage. As companies like Riot Platforms and Marathon Digital temporarily halted their mining operations, they discovered an unexpected windfall – receiving substantial compensation for powering down their machines. This Mining Monday article explores how these Texas-based Bitcoin miners are making millions without actively mining and the profound implications this phenomenon holds for the industry.

The Heatwave’s Impact on Bitcoin Miners:
The Electric Reliability Council of Texas (ERCOT), responsible for supplying power to approximately 90% of the state’s grid load, had to implement unprecedented emergency procedures during the relentless August heatwave. These procedures necessitated specific power consumers, including Bitcoin miners, to curtail their energy consumption temporarily. This effectively meant shutting down their mining operations to alleviate the strain on the grid and ensure uninterrupted power supply for Texans.

The Power of Energy Credits:
Initial impressions that Bitcoin miners were being “paid to shut off” were quickly dispelled by Jason Les, CEO of Bitcoin mining company Riot Platforms. The substantial compensation, totaling around $31 million in energy credits from ERCOT, wasn’t a reward for idling their machines. Instead, it stemmed from a shrewd strategy rooted in power trading. By refraining from mining during periods of elevated energy prices, miners exploit the differential between their power contract price and the market rate. In essence, they’re capitalizing on the energy market’s volatility to bolster their bottom line.

Ancillary Services as a Game-Changer:
In an industry marked by volatility, adaptability is key to success. ERCOT introduced a game-changing strategy known as Ancillary Services, which Bitcoin miners like Riot Platforms readily embraced. These services are procured by ERCOT in the day-ahead market to balance the forecasted supply and demand of electricity on the grid, ensuring smooth real-time operations. For miners, participation in Ancillary Services offers a dual advantage: not only do they qualify for these programs, but they also grant ERCOT the authority to regulate their energy consumption, contributing to grid stability.

Texas Pays Big for Energy Conservation:
During the heatwave, Riot Platforms, based in Rockdale, executed an audacious move, curtailing its power usage by over 95% during peak demand. In doing so, they willingly forfeited substantial Bitcoin mining revenue to provide critical energy resources to ERCOT. This strategic decision allowed Riot Platforms to secure an estimated $24.2 million in power curtailment credits under their ERCOT contract, complemented by an additional $7.4 million earned through ERCOT’s demand response program. Astoundingly, Riot Platforms’ revenue from energy credits in August eclipsed their earnings from actual Bitcoin mining.

Texas’ Attractiveness for Bitcoin Miners:
The allure of Texas for Bitcoin miners goes beyond the weather. The state’s generous energy credits have transformed it into a magnet for mining companies. Although these credits faced legislative scrutiny earlier in the year, the Texas Legislature eventually bolstered their scope, cementing the state’s reputation as a mining hub. Riot Platforms, for instance, has ambitious plans to construct another facility in Corsicana, boasting 1GW of capacity approved by ERCOT. Texas’ hospitable policies and lucrative energy credits are set to ensure that the Lone Star State remains a top choice for Bitcoin miners.

Implications for the Industry:
The experience of Texas Bitcoin miners during the August heatwave serves as a compelling case study of adaptability and profitability within the mining industry. It underscores the notion that miners can diversify their revenue streams by capitalizing on energy market fluctuations and actively participating in grid stability initiatives. As the sector continues to evolve, miners worldwide may explore analogous strategies to optimize their returns while simultaneously bolstering the resilience of their local energy grids.

The Texas Bitcoin miners’ experience underscores the remarkable adaptability and profitability of mining operations. While the Lone Star State’s energy credits offer a compelling case study, the global landscape continues to evolve, with miners worldwide exploring innovative strategies and embracing sustainability to maximize returns while minimizing their environmental impact. As mining remains at the forefront of the digital revolution, its interplay with energy markets, regulations, and environmental concerns will undoubtedly continue to shape its future. Texas, in particular, stands as a testament to the industry’s resilience and ingenuity in the face of adversity.

Moreover, whether you’re an experienced miner or embarking on your mining venture, is your ultimate resource. Discover our wide range of mining equipment and essential utilities, including profitability and hosting calculators. We also provide Mining as a Service (MaaS) with competitive power rates, ensuring sustainable mining at less than $0.03 per kWh. Stay at the forefront of the industry with AsicZ, as the future is yours to mold!


  1. “How Bitcoin Miners in Texas Are Making Millions Without Mining at All” by Pedro Solimano, Decrypt, Sep 8, 2023.
    Read Article
  2. “Texas paid a bitcoin miner more than $31 million to power down during heat wave” by David Martin Davies, Texas Public Radio, Published September 6, 2023.
    Read Article
Mining Monday: Texas Bitcoin Miners Earn Profits from Power Pause