In mid-June 2024, Bitcoin miners in Texas reduced their output due to power restrictions, except for CleanSpark, which recorded a remarkable increase in hashrate.
While many mining companies such as Riot Platforms, Cipher Mining, and Marathon Digital were affected by power outages, CleanSpark excelled by increasing BTC production and reaching the 20 EH/s mark, affirming its sustainable development strategy.
MAIN CONTENT
Bitcoin miners in Texas reduce output due to summer power constraints.
CleanSpark records growth in hashrate and BTC output, surpassing 20 EH/s.
“4CP” measures help reduce energy costs and stabilize the grid.
Why did Riot Platforms reduce Bitcoin mining output in June?
Based on Riot Platforms’ official report and CEO Jason Les’ statement, the company reduced its output by 12% due to implementing the “economic curtailment” strategy under ERCOT’s Four Coincident Peak (4CP) program to support grid stability and optimize operating costs.
Riot mined only 450 BTC in June, down from 514 BTC the previous month due to high summer electricity demand in Texas. CEO Jason Les emphasized:
“The cuts not only help stabilize the grid, but also improve Riot's competitive position.”
Jason Les, CEO Riot Platforms, July 2024
The company sold 397 BTC for $41.7 million and held 19,273 BTC in its vault as of the end of June.
How does the power limit affect other miners?
Cipher Mining and MARA Holdings also had to reduce production capacity due to power constraints and strategic operating plans similar to Riot. Cipher mined 160 BTC, sold 58 BTC, and ended the month with 1,063 BTC in reserves.
“The proactive 4CP avoidance strategy helps maintain the lowest electricity costs in the industry,” Cipher shared in the report.
Cipher Mining Report Statement, July 2024
However, despite the new Black Pearl project coming online at the end of the month, Cipher has yet to escape the decline. MARA’s output fell 25% to 211 BTC due to power outages, aging equipment, and mining luck fluctuations.
Why is CleanSpark still increasing production and hashrate despite the general downtrend?
CleanSpark stood out with a 6.7% increase in production, reaching 445 BTC, along with a sale volume of 8 BTC. The company exceeded its mid-year target with over 20 EH/s hashrate, doubling from the end of last year.
CEO Zach Bradford shares:
“Passing the 20 EH/s mark reflects the focus and efficient mining capacity of our team.”
Zach Bradford, CEO CleanSpark, July 2024
CleanSpark ramps up expansion in Wyoming and Tennessee toward its next goal of 50 EH/s, despite summer power challenges in Texas.
Comparing Production and Strategies of Major Miners June 2024
Company June BTC Production (BTC) Key Strategy Hashrate (EH/s) BTC Reserve Situation Riot Platforms 450 Cut by 4CP, support grid Unspecified information 19,273 BTC Cipher Mining 160 Avoid 4CP, improve energy efficiency Unspecified information 1,063 BTC MARA Holdings 211 Power outage due to weather, old equipment Unspecified information Unspecified information CleanSpark 445 Expand capacity, increase mining efficiency Over 20 EH/s 6,591 BTC
Frequently Asked Questions About Power Outage Impact on Bitcoin Miners
1. Why do Bitcoin miners in Texas have to reduce production in the summer?
Texas implemented power rationing (4CP) in the summer to stabilize the grid during high demand, forcing miners like Riot and Cipher to adjust output to reduce load and lower energy costs.
2. What is the 4CP strategy and how does it affect miners?
4CP is a program that limits electricity on four peak days of the year, helping miners reduce electricity costs but requiring mining capacity to be cut to avoid penalties, contributing to maintaining grid security.
3. How did CleanSpark increase production when competitors decreased?
CleanSpark focused on improving operational efficiency, expanding in Wyoming, Tennessee and reaching over 20 EH/s, helping them increase production and accumulate BTC despite facing electricity constraints in Texas.
4. How does the production cut affect miners' BTC reserves?
Miners like Riot maintain large BTC reserves by selling their mined BTC reasonably, while CleanSpark maintains high BTC reserves thanks to stable output and improved mining efficiency.
5. What are the future trends in Bitcoin mining in Texas?
McKinsey and other experts predict that miners will continue to optimize electricity costs and diversify mining locations to avoid the risk of power outages, combined with expanding scale in states other than Texas.
Source: https://tintucbitcoin.com/bitcoin-giam-khai-thac-thang-june-do-bao/
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