Bitcoin Mining Firms Face Production Challenges Amid Texas Power Curtailment

According to Cointelegraph, several Bitcoin mining companies experienced a decline in production during June, primarily due to power curtailment measures in Texas. Riot Platforms reported a 12% decrease in Bitcoin production, mining 450 BTC compared to 514 BTC in May. Riot CEO Jason Les highlighted the company's power strategy, which includes economic curtailment and participation in the Electric Reliability Council of Texas’s Four Coincident Peak (4CP) and other demand response programs. This approach, he noted, significantly contributes to grid stability while enhancing Riot's competitive positioning. The 4CP program, which began in June, is a tariff designed to manage peak electricity demand during the summer months. Large electricity consumers, such as Bitcoin miners, face transmission charges based on their usage during these peak periods, prompting them to voluntarily curtail operations. Riot also disclosed that it sold 397 BTC for $41.7 million and currently holds 19,273 Bitcoin. Cipher Mining also reported a decrease in production, mining 160 BTC in June. The company sold 58 BTC and holds 1,063 Bitcoin. Cipher attributed the reduced production to its proactive 4CP avoidance strategy, which allowed it to avoid costly penalties and maintain low power costs. Despite the strategic curtailment, Cipher's Black Pearl facility in Texas began contributing to production at the end of June. MARA Holdings experienced a 25% reduction in production, mining 211 Bitcoin compared to 282 in May. As of June 30, MARA held 49,940 BTC and did not sell any during the month. CEO Fred Thiel cited reduced uptime due to weather-related curtailment and the temporary deployment of older machines at its Garden City, Texas, facility as reasons for the decline. He also mentioned natural variability in block luck as a contributing factor. In contrast, CleanSpark increased its Bitcoin production by 6.7% in June, surpassing its mid-year hashrate target of 20 exahashes per second (EH/s). The company produced 445 Bitcoin and sold only 8, bringing its total holdings to 6,591 Bitcoin by the end of the month. This increase in production sets CleanSpark apart from other mining firms facing challenges due to power curtailment in Texas.