Bitcoin Miners Cut Production by 12% to 25% in June to Avoid High Power Costs

Bitcoin miner production in June experienced a notable decline due to power curtailment and adverse weather conditions. Several prominent mining firms reported reduced Bitcoin (BTC) production as they strategically curtailed operations to avoid high peak demand charges, particularly in Texas. This move was driven by the Electric Reliability Council of Texas’s Four Coincident Peak (4CP) program, which aims to manage periods of highest electricity demand during the summer months.

Riot Platforms, one of the leading mining firms, produced 450 BTC in June, marking a 12% decrease from the previous month's 514 BTC. The company's CEO, Jason Les, highlighted that their power strategy includes "economic curtailment" and voluntary participation in demand response programs. This approach not only helps in grid stability but also enhances Riot's competitive positioning by reducing costs associated with peak demand charges.

Cipher Mining also reported a decline in production, mining 160 BTC in June. The company attributed this to its proactive 4CP avoidance strategy, which helped in avoiding costly penalties and maintaining low power costs. Despite the strategic curtailment, Cipher's Black Pearl facility in Texas started contributing to production towards the end of the month.

MARA Holdings faced a 25% reduction in production, mining 211 BTC compared to 282 in May. The company's CEO, Fred Thiel, cited reduced uptime due to weather-related curtailment and the temporary deployment of older machines at its Garden City facility as the primary reasons for the decline. Additionally, natural variability in block luck contributed to the lower production figures.

In contrast, CleanSpark bucked the trend by increasing its Bitcoin production by 6.7% in June. The firm produced 445 BTC and only sold 8, bringing its total holdings to 6,591 BTC. This increase allowed CleanSpark to surpass its mid-year hashrate target of 20 exahashes per second (EH/s).

The overall decline in Bitcoin miner production in June can be attributed to the strategic curtailment of operations to avoid high power costs and grid penalties during peak demand periods. This trend is expected to continue as miners adapt their strategies to manage the increasing costs associated with electricity during the summer months. The insights gained from June will inform further refinements to curtailment models for the remainder of the summer, ensuring that miners can maintain their competitive edge while contributing to grid stability.