Riot reports 17K miners offline due to Texas weather

Published at: Feb. 6, 2023

Crypto mining firm Riot Platforms — formerly Riot Blockchain — reported that 17,040 rigs deployed at its operations in Texas were offline due to “severe winter weather” in the state.

According to a Feb. 6 announcement, Riot reported two of the buildings at its Whinstone facility in Rockdale, Texas were damaged in December 2022 as the state experienced days of sub-zero temperatures. From Dec. 22 to Dec. 25, temperatures across many parts of Texas — and the United States — dropped to below freezing.

“Some sections of piping in Buildings F and G were damaged during the severe winter storms in Texas in late December,” said Riot CEO Jason Les. “As a result of this damage, our previously announced target of reaching 12.5 [exahashes per second] in total hash rate capacity in Q1 2023 is expected to be delayed.”

Les said that the damages initially lowered the facility’s hash rate capacity by 2.5 EH/s, with the company later able to restore 0.6 EH/s following repairs. According to Riot, there were 82,656 rigs running with a hash rate capacity of 9.3 EH/s as of Jan. 31, when the company reported producing 740 Bitcoin (BTC) — worth roughly $17 million at the time of publication.

Though many parts of the United States experienced severe temperature drops in December amid holiday travel, major cities in Texas including Dallas and Austin also went through a major ice storm in early February. Thousands of residents were without power and many tree branches and limbs broke from the weight of accumulated ice, damaging power lines and cars, and blocking roads.

How bad is it? Massive trees are snapping due to the icy conditions. As of Thursday morning, 150k+ Austin Energy customers remain without power. Austin Energy will hold a press conference at 9 am. We’ll be streaming it live on @cbsaustin pic.twitter.com/mb34QOnbZt

— John-Carlos Estrada (@Mr_JCE) February 2, 2023

It’s unclear whether Riot miners were similarly affected by the storm. However, the company did not report curtailing operations due to demand on Texas’ energy grid during the recent freeze.

Riot also reported selling 700 BTC for roughly $13.7 million in January, with the company holding 6,978 BTC as of Jan. 31. The mining firm reported selling coins following extreme heat in the Lone Star State in July 2022.

Related: Crypto miners in Texas shut down operations as state experiences extreme heat wave

In July 2022, Riot said it planned to move many of its mining rigs from a New York facility to Texas in an effort to reduce the firm’s operating expenses. Shares of Riot stock closed down 2.3% at $6.68 on the Nasdaq.

Cointelegraph reached out to Riot Platforms, but did not receive a response at the time of publication.

Tags
Related Posts
Crypto miners eye cheap power in Texas, but fears aired over impact on the grid
The recent crackdown on crypto mining in China has seen concerns expressed over the potential impact a hashrate migration could have on Texas’ unreliable electricity market, as an increasing number of dislocated miners eye the Lone Star State. Texas’ abundant sources of renewable energy and highly deregulated power grid make the state an obvious choice for migrating miners from China and elsewhere, with 20% of Texan electricity being generated by wind as of 2019. Speaking to CNBC, Brandon Arvanaghi, a former security engineer at crypto exchange Gemini, predicted Texas will see “a dramatic shift over the next few months” as …
Bitcoin / June 16, 2021
Argo Blockchain files for $57.5 million offering of secured notes to fund Texas mining facility
United Kingdom-based crypto mining company Argo Blockchain will be funding part of the building and equipment of its planned 800-megawatt data center in West Texas through an offering of senior notes. According to a Nov. 8 filing with the Securities and Exchange Commission, Argo plans to offer $57.5 million worth of 8.75% senior unsecured notes set to mature on Nov. 30, 2026. The company said it intends to use the proceeds for rigs at its Texas crypto mining facility as well as construction costs. Argo broke ground on the 200 MW crypto mining facility based in July, reporting the site …
Sec / Nov. 9, 2021
The Bitcoin shitcoin machine: Mining BTC with biogas
Next time someone tries to poo-poo the renewable credentials of Bitcoin (BTC) mining, remember AmityAge Mining Farm. Founded by Gabriel Kozak and Dušan Matuska, the Bitcoin mining facility uses human and animal waste to generate electricity for mining. Matuska, the man “who met Satoshi Nakomoto”, told Cointelegraph that “methane from biodegradation processes runs our machines.” As human and animal waste isn’t running out any time soon, their BTC mining process is both environmentally friendly and renewable. According to Matuska, using renewable energies such as biogas “shows that we can really accelerate the adoption of these renewables and make their return …
Adoption / March 29, 2022
Argo Blockchain facility in West Texas expects to start mining Bitcoin in May
Crypto mining company Argo Blockchain’s plans to open a data center in West Texas are likely nearing completion following an inauguration ceremony. In a Thursday announcement on Twitter, Argo said it expects to begin mining operations at its Helios facility in Dickens County, Texas starting next week. The announcement came more than a year after the mining firm purchased a 320-acre land plot to construct the facility, first breaking ground on the 200-megawatt data center in July 2021. We are thrilled to announce the energization and opening of Helios, our flagship Bitcoin mining facility in Dickens County, Texas! ⚡⚡⚡ Thanks …
Bitcoin / May 5, 2022
Repurposing Bitcoin mining heat can solve global energy crisis: Arcane
The flexibility behind running Bitcoin (BTC) mining operations can be vital to solving the real-world problems that stand in the way of the energy industry, suggests Arcane research. One of the biggest concerns authorities raise when it comes to Bitcoin’s mainstream adoption is its energy requirements. While innovations in chipset manufacturing have helped reduce operational costs related to Bitcoin mining, a report from Arcane reveals the market’s potential to transform the energy industry. Owing to low cost of reacting, Bitcoin mining complements the growth of wind and solar grids, which often produce unstable and non-controllable energy. Arcane research points out …
Adoption / Sept. 4, 2022