Riot Blockchain’s Texas Mining Operations Disrupted by Winter Storms

The cryptocurrency mining business Riot Platforms, formerly referred to as Riot Blockchain, has actually revealed that 17,040 rigs that were set up at its centers in Texas have actually been rendered unusable as an outcome of the “extreme winter weather” that has actually been experienced in Texas.

Riot stated in a news release dated February 6 that 2 of the structures of its Whinstone plant situated in Rockdale, Texas were harmed in December as an outcome of the subzero conditions that the state withstood for numerous days. From the 22nd through the 25th of December, temperature levels plunged listed below freezing in various locations of Texas in addition to the remainder of the United States.

According to Riot’s Chief Executive Officer Jason Les, “certain pieces of pipe in Buildings F and G were damaged during the severe winter storms that hit Texas in late December.” “It is likely that we will miss our previously declared aim of attaining 12.5 in total hash rate capacity in the first quarter of 2023 due to the harm that has been caused,” stated the business.

According to Les, the damages triggered a preliminary reduction in the center’s hash rate capability of 2.5 EH/s. However, when repair work were made, business had the ability to return 0.6 EH/s to the center. As of the 31st of January, business Riot declared producing 740 Bitcoin (BTC), which had a worth of around $17 million at the time of publishing. Riot revealed that there were 82,656 rigs running with a hash rate capability of 9.3 EH/s at that time.

Even though substantial temperature level decreases happened in numerous areas of the United States in December due to increased travel over the holiday, significant towns in Texas such as Dallas and Austin were struck by a considerable ice storm in early February. As an outcome of the weight of the built up ice, various tree branches and limbs collapsed, which triggered damage to power lines, autos, and streets, leaving countless residents without access to electrical energy.

It is unidentified if miners at Riot were affected in a comparable way by the storm. Despite this, the company did not divulge any decreases in operations as an outcome of the pressure that the current freeze put on the electrical energy system in Texas.

Additionally, throughout the month of January, Riot reported offering 700 BTC for around $13.7 million. As of the 31st of January, business had an overall of 6,978 BTC. After the record-breaking heat wave that swept over the Lone Star State in July of 2017, the mining business reported offering coins.

During very same month, Riot stated that it planned to transfer a considerable variety of its mining rigs from an area in New York to one in Texas in an effort to decrease the business’s functional expenses. Riot stock ended trading on the Nasdaq the very same day it was launched at $6.68, down 2.3%.