Riot Blockchain’s Texas Mining Operations Disrupted by Winter Storms

Riot Platforms, formerly Riot Blockchain, announced that 17040 of its Texas-based cryptocurrency mining companies have been made inoperable by the extreme winter weather that Texas has experienced.

Riot stated in a press release on February 6, that two buildings at its Whinstone plant in Rockdale, Texas were destroyed in December by the cold temperatures that the state experienced for several days. The temperatures dropped below freezing across Texas, as well as in the rest of the United States from the 22nd to the 25th of Dezember.

Jason Les, Riot Chief Executive Officer stated that certain pieces of pipe from Buildings F andG were damaged in the severe winter storms which hit Texas in December. The company stated that it is possible that we will not achieve our previously set goal of 12.5 total hash rate capacity by the end of the first quarter 2023 because of the damage that has been done.

According to Les, the initial decrease in facility’s hashrate capacity of 2.5 EH/s was caused by the damages. After repairs, however, the business was able return 0.6 EH/s. Riot claimed to have created 740 bitcoins as of 31 January.BTC(), with a market value of approximately $17million at the time of publication. Riot reported that there were 82 656 rigs with a hash rate capacity 9.3 EH/s.

Although significant temperature decreases were observed in many areas of the United States during December due to increased holiday travel, major Texas towns like Dallas and Austin were struck by an intense ice storm in February. Due to the weight of the accumulated snow, many tree branches and limbs fell, causing damage to power lines and automobiles. This left thousands without electricity.

It is not known if Riot’s miners were similarly affected by the storm. The firm didn’t disclose any reductions in operations due to the strain Texas’s recent freeze put on its electricity system.

Riot also reported that 700 BTC were sold for $13.7 million during January. The business had 6,978 BTC as of the 31st January. The mining company reported that it sold coins after the record-breaking heatwave that struck the Lone Star State in the summer 2017.

Riot also announced that it would relocate large numbers of its mining equipment from New York to Texas to reduce operational costs. The Nasdaq closed trading at $6.68 for Riot stock, 2.3% lower than the previous release.

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