Riot Platforms Mined 412 Bitcoin in September, Marking 28% Growth

Riot Platforms announced a significant increase in Bitcoin production for September 2024, mining 412 Bitcoin—a 28% rise compared to the previous month. This growth is attributed to the enhanced operational capacity at their mining facilities in Texas and Kentucky, according to a company statement. Riot’s CEO, Jason Les, credited the boost in production to improvements in operational efficiency and increased hash rates across their mining operations.

With this uptick, Riot Platforms now holds 10,427 Bitcoin. The company's participation in the Electric Reliability Council of Texas' (ERCOT) Four Coincident Peak program also contributed to its success. By voluntarily reducing operations during times of high electricity demand, Riot helped ease the load on the power grid, simultaneously lowering its own energy costs—a critical factor in their business model.

Riot also completed the third development phase at its Corsicana, Texas facility, adding 100 megawatts of additional power capacity, further supporting its growing mining operations.

Bitcoin Mining and Riot’s Increased Efficiency

Bitcoin mining is the process of validating transactions on the Bitcoin network by solving complex mathematical puzzles. Miners like Riot are rewarded with newly minted Bitcoin for their work. Riot’s increased hash rate—representing the computational power devoted to mining—has significantly boosted its production capacity.

Riot Platforms vs. Bitfarms: A Corporate Struggle

Over the summer, Riot Platforms made headlines by proposing a $950 million takeover bid for its Canadian competitor, Bitfarms. Riot had already acquired a substantial stake in Bitfarms and aimed for full control, but Bitfarms rejected the offer, calling it undervalued.

In response, Bitfarms adopted a "poison pill" defense, restricting Riot’s ability to increase its stake without board approval. However, Riot continued to increase its holdings, eventually becoming the largest shareholder in Bitfarms. By mid-2024, Riot intensified its push for control by nominating its own candidates for Bitfarms’ board, leading to mounting tensions and the postponement of a special shareholder meeting.

In September 2024, both companies reached a settlement. Bitfarms agreed to appoint a board member backed by Riot, and Riot secured additional rights to acquire more shares, provided its stake remained at or above 15%.

Riot Platforms' mining growth and its strategic maneuvers within the industry highlight its expanding influence in the Bitcoin mining space, positioning it as a formidable player in the market.