Riot Platforms, Inc. recently reported its Bitcoin mining performance in June 2023, revealing that it produced 460 Bitcoin while executing an efficient foraging strategy.
The mining company produced 40% less bitcoin in June, mining just 460 BTC compared to 757 BTC in May.
| Metric | June 2023 | May 2023 | June 2022 | Month/Month | Year/Year |
|---|---|---|---|---|---|
| bitcoin product | 460 | 676 | 421 | -32% | 9% |
| Average bitcoin produced per day | 15.3 | 21.8 | 14.0 | -30% | 9% |
| Bitcoin held | 7,250 | 7,190 | 6,654 | 1% | 9% |
| bitcoin sold | 400 | 600 | 300 | -33% | 33% |
| Bitcoin Sales – Net Proceeds | $10.6 million | $16.5 million | $6.2 million | -36% | 71% |
| Average net price per bitcoin sold | $26,456 | $27,568 | $20,627 | -4% | 28% |
| Deployed hash rate | 10.7 PE/s | 10.5 PE/s | 4.4 PE/s | 2% | 143% |
| Deployed minors | 95,904 | 94 176 | 42,455 | 2% | 126% |
| Electricity sales | $8.4 million | $0.5 million | $1.9 million | 1,452% | 338% |
| Demand Response Revenue | $1.6 million | $2.3 million | $0.7 million | -29% | 137% |
Source: Riot
Despite the drop in sales, Riot was able to leverage its energy strategy to generate substantial revenue equivalent to $10 million in revenue. As a result, the combined revenue from electricity sales and demand response was equivalent to an increase of “361 BTC” based on the average Bitcoin price during the month.
Jason Les, CEO of Riot, commented,
“June was a momentous month for Riot as the results of our mining operations, energy strategy and growth plans all came to fruition.
We announced an initial order of 33,280 MicroBT miners for our Corsicana facility, which is expected to add 7.6 PE/s to our self-mining fleet and also provides an option for future orders on the same terms.
Additional MicroBT miners would increase Riot’s hash rate by 71%, given the current reported figure of 10.7 PE/s.
Bitcoin miners sell BTC.
The news comes as other US miners sought to take advantage of the recent BTC price surge to secure their profits. In June, BTC mostly traded above $25,000, peaking at $30,750.
According to Glassnode data analyzed by CryptoSlate, Bitcoin miners sold off a notable amount of their mined Bitcoin in June to fund their operations. Data shows that Bitcoin miners’ exchange flow peaked at 4,710 BTC on June 20, marking the highest rate in five years.
| MINOR | BITCOIN PRODUCTS | BITCOINS SOLD | PERCENTAGE SOLD | BTC HOLDINGS | TOTAL HOLDINGS SOLD |
|---|---|---|---|---|---|
| Riot | 460 BTC | 400 BTC | 87% | 7,250 BTC | 5.52% |
| digital marathon | 979 BTC | 700 BTC | 71.5% | 12,538 BTC | 5.58% |
| Hut 8 | 70 BTC | 217 BTC | 310%* | 9,136 BTC | 2.38% |
| Cleanspark | 491 BTC | 413 BTC | 84% | 529 BTC | 78.07% |
June BTC Miner Activity
*(Based on June production)
Comparatively, Riot sold fewer Bitcoins per month, with the company announcing a sale of 400 Bitcoins in June 2023, down 33% from May 2023.
Riot’s power strategy
However, Riot’s unique energy strategy has allowed the company to retain a “competitive edge” and contribute significantly to the larger energy grid during the June Texas heatwave without relying solely on Bitcoin sales to fuel it. generate income. Explained them,
“As temperatures in Texas reached near-record highs during the month and demand for electricity was high, we made aggressive decisions about our energy use based on market signals.
Through our participation in various market programs within ERCOT, the company generated $8.4 million in electricity sales and $1.6 million in demand response revenue.
According to Riot, the energy strategy involves participation in ERCOT’s ancillary services and the Four Coincident Peak (4CP) program. The company effectively uses these services to balance electricity supply and demand, even during peak periods.
Riot then sells access to the power load to ERCOT and receives compensation whether or not ERCOT requires a power outage. Through the 4CP program, Riot voluntarily reduces power consumption during peak periods and, in return, receives credits for future transmission costs.
The flexibility of its long-term power purchase agreement allows Riot to resell power to the market when it is more profitable than mining Bitcoin.
